China's GCL-Poly To Buy Jiangsu Solar Co. For $3.8 Billion

In the largest Solar deal to date, GCL Poly Energy Holdings plans on buying Jiangsu Zhongneng Polysilicon Technology Development Co. make of polysilicon and solar wafers.

Investment bank Morgan Stanley owns almost 16% of GCL will their interest drop to 1.45% after the sale.

The deal is very significant because the company agreed to pay this huge amount to acquire solar assets which will totally change its business model - one that will be dominated by the solar energy business," said Yukie Lee, an analyst with Core Pacific-Yamaichi.

"I expect more than 80 percent of its revenue will be coming from the solar business from next year," Lee said.

GCL-Poly has taken over the business of making polysilicon at a time when prices of the raw material used for solar panels have fallen to about $70 a kilogram from its peak of $400 a kg in 2008 due to a glut. --Reuters