LED lighting market is close to the breakthrough point of mergers and acquisitions

On the eve of the advent of the LED general lighting era, a wave of mergers and acquisitions is surging in the LED lighting industry in China.

“Next, NVC will meet the needs of the LED lighting market at home and abroad through industry consolidation and mergers and acquisitions.” On the 12th, NVC Lighting Chairman Wu Changjiang revealed to reporters that NVC Lighting is currently looking for core technologies in the LED industry. Channels, or domestic and foreign companies that have complementary products with NVC Lighting, can enrich NVC LED products.

“NVC Lighting has formed strategic partnerships with LED giants such as Cree and Taiwan Crystal. The global LED lighting market has reached a critical point of breakthrough because the product prices have been relatively reasonable, and product technology and quality have matured.” The Yangtze River said.

In fact, Neo-Neon Lighting and Sunshine Lighting have already taken the lead in launching the overseas LED lighting market by means of mergers and acquisitions.

On January 25, Neo-Neon announced that it had acquired HCI in the United States for a consideration of US$17 million. According to the announcement, HCI is a designer, manufacturer and distributor of professional commercial LED lighting products, and has a wide range of architectural designers and distributors in the world. Prior to this time, Neo-Neon also acquired two leading companies in the North American LED lighting market, Ilio International and American Lighting.

After Sunlight Lighting took a 50% stake in Hangzhou Hanguang Lighting at a consideration of 13.5 million yuan, it held a 30.188% stake in Japanese LIREN Company for a consideration of 1.3276 million yuan.

According to Fan Minghong, president of Neo-Neon, M&A will strengthen the sales force of Neo-Neon LED lighting and lighting products in the United States and Canada. Sunshine Lighting said that Japan's LIREN company has rich experience in LED lighting products. With the cooperation of both parties, the manufacturing level of the sunlight lighting LED light source will reach the same level as Japan or international high-level manufacturers.

"Berde Runda will also carry out some strategic mergers and acquisitions in China." Wang Donglei, chairman of BDO Runda, told reporters that in accordance with the progress of the current domestic LED industry, and the arrival and production of domestic MOCVD equipment (LED chip production equipment) From the perspective of LED light sources, it is possible to fall to US$1 per watt by the end of this year, and this price is only 1.2 to 1.5 times the price of current energy-saving lamps. “When the difference between LED products and energy-saving lamp products is only 1.2 times, LED lighting The market will suddenly enlarge. It is estimated that China's energy-saving lamp replacement rate will reach 10%, while the European and American market replacement rate will reach 50%." Wang Donglei also revealed that by the end of this year, BDO Runda will have 50 MOCVD equipment into production.

Wang Donglei’s argument seems to explain the merger and acquisition of Neo-Neon Lighting and Sunlight Lighting, arranging the eve of the LED lighting era, and rushing to eat the LED lighting market that may suddenly be enlarged.

“Everybody expects to use acquisitions to make up for their shortcomings in industry and channels.” Insiders pointed out that the traditional lighting manufacturers represented by NVC Lighting are still lacking in LED lighting R&D and core technologies. The LED vertical integration companies represented by Neo-Neon are naturally lacking in overseas channels and brands. “M&A is undoubtedly the best means to quickly enter and catch up on the LED lighting market.” While wearing the LED concept, acquisitions are also easy to obtain. Capital market support.

Based on this, LED lighting industry has been enveloped in the atmosphere of "big fish eat fish." "Because the lighting companies all want to take advantage of the transformation of LED lighting, the rapid development of bigger and stronger, changing the traditional pattern of the traditional lighting market is everywhere," industry analysts said.

At present, there are more than 10,000 lighting companies in mainland China, and the top three sales including NVC Lighting and Philips account for only 2.5% of the total sales of lighting products in the Mainland. It is difficult for them to rely on ordinary energy-saving lighting products. Divide the high and low, the future focus of competition on LED lighting.