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ReneSola calls off Dynamic Green Energy acquisition after missing government approval deadline

Solar power products and wafers manufacturer ReneSola (NYSE: SOL, AIM: SOLA) called off its proposed acquisition of solar power producer Dynamic Green Energy Limited after failing to secure the approval of the local government agencies in China, where an operating subsidiary of Dynamic Green Energy’s wholly owned subsidiary Jiawei Solar China is located.

The companies reached a share purchase agreement in September and the proposed transaction received the approval from both companies’ boards of directors, however the agreement was also contingent on securing relevant government approvals.

According to the terms of the agreement, the transaction was terminated without penalty after the 31 December deadline for obtaining these approvals was missed.

“Despite the termination of the Jiawei acquisition, ReneSola's downstream strategy remains intact and we continue to witness impressive organic growth in our JC Solar cell and module business,” said chief executive Li Xianshou.

The company said it expected to expand its downstream business through leveraging its wafer manufacturing capabilities and deepening customer relationships.

Disclosure: The author holds no positions in the company