SunPower Corp. has announced that its planned company split into two independent, pure-play solar companies took an important step forward when Maxeon Solar Technologies' future investor and long-time partner Tianjin Zhonghuan Semiconductor Co. (TZS), received necessary regulatory approval from China's State Administration for Market Regulation.

SunPower announced last November that it planned to separate into SunPower and Maxeon Solar. Each company will focus on distinct offerings built on extensive experience across the solar value chain.

Concurrent with the transaction, an equity investment of $298 million will be made in Maxeon Solar by TZS, a premier global supplier of silicon wafers.

"Today's announcement puts us one step closer toward creating two independent, pure play, publicly-traded companies," said Tom Werner, president and CEO of SunPower. "Our planned transaction will allow for each company to focus on their core strengths in their respective markets around the world."

The planned company split is expected to be completed by the end of the second quarter, pending signing of financial facilities. Maxeon Solar is planning to host a Capital Markets Day prior to the close of the transaction.

KeyFacts Energy: Renewable Energy news