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4 Pros and Cons of SAS Acquisition

By Korbin Lan
Published: Feb 06,2014

200 million euros is quite cheap for buying solar module factory aleo, moreover may receive about 21 million euro assets and European shipments base. It looks very good deal, but there are some problems to overcome follow.

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Important Investment and Acquisitions of SAS

In order to expand markets and enhance technical capabilities, SAS successively conducted several investments and acquisitions...

SAS Acquires German Solar Company aleo by 0.2 Billion Euros

Taipei Taiwan- Sino-American Silicon Products Inc.(SAS) Monday announced that it will buy Germany solar module company aleo Solar AG...

Pros 1: Avoid tariffs

For SAS, this acquisition can avoid sanctions by the future high tariffs, shipping by the European plants, can reduce the risk of competition.

Pros 2: increase product output point

The deal will help expand the shipments base in European, and through the aleo brand, SAS may able to access to quality demanding Japanese market.

Cons 1: Production costs are high

Manufacturing costs in European is higher than Taiwan and China, when purchasing modules, Power plant operators always consider the price and certification, therefore Cheap or not is still unknown.

Cons 2:How to even loss

aleo still at a loss, employee unions is very strong in Germany, and there are cultural differences between East and West, how to make this company back to profit as soon as possible will be a big test to SAS.

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