Kamal Ahuja

Canadian Solar: The Next Solar Takeover Target?

Kelvin Schulle quotes "Acquiring Canadian Solar is a good way for the company (Suntech Power / STP) to move to the next level and achieve its global sales target". I believe that acquiring a company solely for the purpose of gaining market share is one of the worst strategic moves a company can make (except when it is a distress sale). There really is no need for the solar PV module manufacturing sector to think about consolidation at this time. Most of the emergent companies have been successful in raising additional capital to expand production and operations. Unlike the internet companies in the "bubble years", most of the solar companies are on their path to profitability. I will be looking for other reasons to warrant consolidation in this sector.