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The Wave Of Mergers And Acquisitions Has Continued The LED Industry Has Been Reshuffled
Oct 17, 2017

    Recently, LED listed companies have released the first half of 2017 earnings forecast, many LED enterprises have seen steady rise. The LED industry as a whole is going up and the market space is shrinking, and the competition in the industry is getting fiercer. Since 2017, the merger and acquisition of the LED industry has been rising, the wave of failures has continued, and the industry alteration has intensified. 


Mergers and acquisitions are on the rise 

      At present, the LED industry has entered the era of micro-profits. Under the industry background of excessive competition and excess capacity, LED industry integration accelerates and mergers and acquisitions are frequent. M&a, as a simple and fast development path, has been praised by many LED enterprises. Through merger and acquisition, some enterprises are expanding vertically and carrying out LED whole industry chain layout; some enterprises go sideways and go abroad to the world; some companies try new areas and explore different paths. 

      Since 2017, LED industry m&a has been reorganized. According to incomplete statistics, there have been more than 30 mergers and acquisitions in the LED sector. The m&a cases have been repeatedly staged and the forms of m&a have diversified. In addition to the merger and acquisition of the upstream and downstream of the LED industry chain, it has also extended its tentacles to education, media, Internet and other fields. 

     On July 26, the state science and technology plan to acquire a 60% equity stake in aiga lighting; on August 15, zhou Ming proposed to buy a 60% stake in tsinghua university. on August 16, zhou Ming technology bought hangzhou cypress 26. 68% share; on September 04, a 100% stake in xi and optoelectronics was proposed. In order to accelerate the company's development of LED lighting business, chau Ming technology has made a series of acquisition moves. 

     In addition, the LED enterprises, such as wood linson, hua can photoelectric and flying sound, have also made overseas acquisitions to promote the growth of power and to the international market. 


The tide of failures continued 

      In 2017, the overall LED market is good, and many LED enterprises are growing. However, there are also some LED companies that are not optimistic, some are gradually spinning off the LED business, some are heading for closure. 

     In early 2017, ford's lighting legal representative, wang gongjie, issued a statement on the liquidation of forts, which became the first LED lighting company to go bankrupt in 2017. Ford, lighting was founded in 2004, main business LED bulb, LED strips light, LED tube light, LED panel light, LED project-light lamp high-quality energy-saving lamps and lanterns, sales network throughout Europe, Asia and the Pacific, the Middle East, Africa, North America and South America and so on more than 90 countries and regions. Earlier, ford also brought in actor liu qingyun as image spokesman, to build up his brand image. The most immediate cause of the collapse of the fords was the collapse of the capital chain. 

    Some companies are also gradually shedding their LED businesses. For example, multi-fluorodo plans to transfer its LED lighting subsidiary; the company has a net worth of nearly 2 billion yuan;

Guangdong ganghua lianhe year loss formally abandoned LED business, etc. For a company with a small number of original LED businesses, and in slow growth and even negative growth, spinning off the LED business has become a choice that has to be done. 


Slower growth of shuffling 

    With the continuous deepening of mergers and acquisitions and bankruptcies, the LED industry has been reshuffled. Many enterprises are submerged in the wave of industrial development, which will surely bring some impact to the LED industry. But on the other hand, the gradual reduction of the number of enterprises is the inevitable result of the competition. 

      In the industry, industry shuffle is a normal development trend, and any industry is going through the process of savage growth and optimization and upgrading. The merger and reorganization will be a normal, and the radical retreat will be wise.