OSRAM's Potential Suitors

I currently had a discussion with a partner of ours in Taiwan, Martin Shih, on the potential sale of OSRAM’s general lighting business.  He had some very useful insights as to which foreign company might be able to purchase the division.

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I currently had a discussion with a partner of ours in Taiwan, Martin Shih, on the potential sale of OSRAM’s general lighting business. He had some very useful insights as to which foreign company might be able to purchase the division.

On first view, he thinks that the potential acquisition by MLS (The parent company of Forest Lighting) will be difficult and believes that SH Felio Acoustics has a higher possibility to acquire the company.

For the last couple of months, there have been several Chinese LED lighting companies announcing their intentions to bid for OSRAM’s lighting division, and it is almost certain that there are more that have not been as vocal about it. While there has been a lot of noise about MLS, they are in fact a bit late to the party with their bidding. While MLS has Forest Lighting in the United States, they have not seen the growth they were hoping for from the company, and purchasing OSRAM would be the easiest way for them to expand their sales channels into this market. On the other side, OSRAM Opto might not be too happy with the sale, as MLS would likely use its own packaged LEDs from Epistar.

It appears that the leading contender to make the purchase would be SH Felio Acoustic. Its 100% owned subsidiary, SH Yaming Lighting, already has a good relationship with OSRAM and as a state-owned company it has the funding and strategic power behind it to make this happen as well. Additionally, OSRAM Opto would still be able to sell LEDs to Yaming Lighting.

We’ve seen other state owned companies make bids for LED & Lighting companies in the past, most recently with GO Scale Capital (Backed by the Jiangxi government) attempting to purchase Lumileds, and it appears that this case may follow the same path.

These are only a couple of the options, but still something to think about.

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