LED lighting industry mergers and acquisitions undercurrents or greet price turning point

LED light into ordinary people's homes into battle on the eve of the industry began to emerge merger tide. In March 30th, NVC and CREE signed a strategic cooperation agreement in Shanghai, NVC executive vice president Yin Kang pointed out, LED general lighting curtain is about to open, industry integration is imperative.

Cross industry cooperation to complement each other

According to reports, NVC cooperation with CREE, mainly reflected in the lighting application development, technical exchanges and cooperation, promote the development of the market in three aspects.

CREE is a listed company on Nasdaq, providing compound semiconductor materials, epitaxy, chip, packaging and LED lighting solutions. CREE Chinese market general manager Tang Guoqing said, CREE LED has technical advantages in terms of brightness, light effect, thermal performance, life, reliability, and energy-saving lamp manufacturer Chinese NVC as the largest dominant in commercial lighting, model of cooperation between the two sides will form a high-end LED lighting products.

NVC and CREE announced a strategic cooperation, apparently to compensate for the lack of technology. Industry forecast to 2015, LED lighting will account for the entire market 40%-50%. LED is a cross industry products, the semiconductor industry, the lighting industry, are faced with learning and integration issues and opportunities.

Industry mergers and acquisitions tidal undercurrents

NVC last May listed in Hongkong. Yin Kang said, get public funds will be mainly used for mergers and acquisitions, the company will through the integration of mergers and acquisitions, to better meet the needs of domestic and international LED lighting market.

He said, after NVC and Taiwan EPISTAR established strategic partnership. They are mainly divided into two types of mergers and acquisitions target companies, one in the field of LED has the core technology of the company, and the other is to have a certain channel advantage, especially in the mature market in overseas channels have the advantage of the company.

In fact, this year, mergers and acquisitions strategy in the LED industry has emerged many times. In January 25th this year, Kerry announced that a $17 million cost of the acquisition of the U.S. company HCI. In addition, Yankon have also to the price of 13 million 500 thousand yuan for Hangzhou Hanguang lighting 50% stake to 1 million 237 thousand and 600 yuan to obtain a 30.188% stake in LIREN company in japan.

Reduce the cost of lighting industry highlights the turning point

Whether in technology or for the integration of channels, are to meet the era of LED general lighting. Insiders, according to the current pace of development of the LED industry, by the end of this year, LED light source prices may fall to $1 per watt, compared with the price of energy-saving lamps, only expensive 20%-50%. According to the laws of the industry, once the price difference, LED lighting market will expand at an unprecedented rate. Only in China, the replacement rate of energy-saving lamps can reach 10% in the short term, while the European and American market replacement rate is expected to reach more than 50%.

In response to the sudden expansion of the LED general lighting market, domestic enterprises want to accelerate the pace of mergers and acquisitions through mergers and acquisitions. According to statistics, China currently has more than 1 million, NVC lighting company, and PHILPS, Shunde Huaqiang benbon and other top three enterprises and the occupancy rate of only 2.5%. Loss of LED market opportunities, it is likely to lose seats in the entire lighting market.

Yin Kang said: "the LED is not our source of profit, we hope that through cooperation and mergers and acquisitions, strengthen quality and reduce the cost, I believe that with the amplification of the LED market, two or three years after this one will become the source of profits. "