CATL(SZ:300750) Xin Lang Cai Jing·2026-02-06 01:03Core Viewpoint - The renewable energy industry is on the verge of a historic trillion-level merger, with reports indicating that CATL is in talks to acquire Huawei Digital Energy, potentially leading to a split sale of its assets [2][17]. Group 1: Acquisition Details - CATL is reportedly negotiating to acquire Huawei Digital Energy, which has entered a substantive phase [2][17]. - Both CATL and Huawei Digital Energy have declined to comment on the acquisition discussions [3][18]. - If the acquisition proceeds, the most affected competitor will be Sungrow Power Supply [3][19]. Group 2: Internal Movements and Market Context - There are indications that Huawei Digital Energy is preparing for potential staff changes, with discussions about severance packages for employees who may not transition to the new company [4][20]. - Huawei's previous statements indicated no plans for an IPO or sale of its digital energy and cloud businesses, raising questions about a shift in strategy [4][21]. - The domestic renewable energy sector has become increasingly competitive, leading Huawei to consider a realignment of its business focus [4][21]. Group 3: Financial Performance - Huawei's Digital Energy business reported a revenue of 68.678 billion yuan in 2024, a 24.4% increase year-on-year, making it the third-largest business segment for Huawei [6][23]. - Despite its strong performance, analysts suggest that Huawei may prioritize investments in AI and communications over digital energy, which could justify a sale [6][23]. Group 4: Competitive Landscape - If the acquisition is finalized, it could create a new giant in the renewable energy sector, reshaping the competitive landscape globally [8][25]. - The merger would significantly impact the inverter market, where Huawei and Sungrow have historically held a combined market share of 55% [9][26]. - Analysts believe that acquiring Huawei Digital Energy would allow CATL to complete its ecosystem, enhancing its competitive position against rivals like BYD and Sungrow [9][26]. Group 5: Pricing Negotiations - There are significant discrepancies in the valuation of Huawei Digital Energy, with reports suggesting Huawei's asking price was around 400 billion yuan, while CATL's offer was approximately 100 billion yuan [7][24]. - The involvement of additional capital in the acquisition process may facilitate negotiations between the parties [7][24]. Group 6: Potential Implications - The acquisition could lead to increased competitive pressure on Sungrow, as CATL would gain substantial advantages in technology, channels, and scale [9][29]. - The merger would necessitate cultural integration between the two companies, which have distinct corporate cultures [10][30]. - Legal scrutiny may arise from the merger, but the likelihood of antitrust issues appears low given the current competitive dynamics [11][31].