Danfoss, SMA Solar link for inverters

German inverter maker SMA Solar Technology and Denmark’s Danfoss said they plan to enter a close strategic partnership, in which the engineering group will buy 20% of SMA’s outstanding shares for €302m ($415m) and sell its complete solar inverter business to SMA.

SMA shares jumped 7.41% to €44.42 by 1030 on Wednesday in Frankfurt in a declining overall market.

“The strategic alliance with Danfoss strengthens SMA’s leading position in the global photovoltaic market,” says SMA chief executive Pierre-Pascal Urbon, adding that in a highly competitive market environment, SMA will benefit from Danfoss’ years of experience with automated drives.

“By establishing a close co-operation there is significant potential to improve the cost position in both companies.”

Danfoss’ purchase of a fifth of SMA shares comes after the German company recently posted losses amid a stronger-than-expected decline in European solar markets, and had to Log in to read complete article.

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