Germany's Bosch buys Aleo to expand solar business

FRANKFURT Mon Aug 3, 2009 3:26pm IST

Stocks

   

FRANKFURT Aug 3 (Reuters) - Germany's Robert Bosch [ROBG.UL], the world's largest supplier of automotive parts, said it agreed to buy Aleo Solar (AS1Gn.DE), expanding further into the solar-energy industry. Bosch said on Monday it agreed to buy 39.43 percent of Aleo's shares for 46 million euros ($65.54 million) and aims to also purchase the remaining shares, in both cases for 9 euros apiece.

Based on outstanding shares the price would come to 117 million euros.

Shares in Aleo soared 32 percent to 8.95 euros at 0954 GMT.

Bosch, a privately held German engineering conglomerate with more then 45 billion euros in annual sales, last year diversified into the photovoltaics business by taking control of Ersol ES6G.DE for more than 1 billion euros.

Earlier this year it said it would spend 530 million euros on a new crystalline solar cells and modules factory at Ersol.

Solar-energy peer Solon SOOG.DE jumped 7.6 percent to 10.95 euros, after WestLB analysts wrote in a note that Solon represented another attractive target and as local traders said stock prices in the entire industry were due to benefit from takeover speculation.

"With the combination of Ersol and Aleo Solar, Bosch was able to control the total photovoltaics value chain," analysts at Steubing research said.

While Ersol offered access to silicon ingots -- used for computer chips -- wafers, solar cells and modules markets, Aleo adds modules, international distribution channels and access to installers, the analysts said.

Aleo generated sales of roughly 360 million euros last year, Bosch said.

In a separate statement, Bosch and Samsung SDI (006400.KS) said they would supply lithium-ion battery cells for BMW's (BMWG.DE) electric vehicle project due in the first half of the next decade.[ID:nL3141522] ($1=.7019 Euro) (Reporting by Ludwig Burger; Editing by Hans Peters)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

Sensex, Nifty rise to second consecutive record high

Sensex, Nifty rise to second consecutive record high

The BSE Sensex and Nifty on Friday rose to their second consecutive record highs. The 30-share Sensex surged as much as 1.5 percent to an all-time high of 27,759.01. The broader Nifty gained as much as 1.49 percent to a record of 8,291.65.  Full Article 

REUTERS SHOWCASE

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage