China's ReneSola Drops Plan To Buy Dynamic Green Energy

Jiashan, China-based producer of solar power products, ReneSola, has announced that the company has decided not to proceed with its acquisition of Dynamic Green Energy Limited.

ReneSola and Dynamic Green, which operates through its wholly owned subsidiary Jiawei Solarchina Company. and other Chinese operating subsidiaries, announced a share purchase agreement on September 23, 2009 under which ReneSola agreed to acquire 100% of the shares of Dynamic Green, subject to customary closing conditions.

While the acquisition and share purchase agreement were approved by both companies' boards of directors, the transaction has not been approved by local government agencies where an operating subsidiary of Jiawei is located. According to the terms of an agreement between Jiawei and the local government, the sale of shares of Dynamic Green requires relevant government approvals.

According to ReneSola's chief executive officer, Li Xianshou, despite of the termination of the Jiawei acquisition, ReneSola's downstream strategy remains intact and the company is continuing to acheive organic growth in its JC Solar cell and module business. He added that he expected to see significant top-line and bottom-line growth from the company's downstream business in 2010.

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