Sharp has announced its plan to invest $305m (£195m) to acquire US solar project developer Recurrent Energy, as the move is expected to heighten the electronic giant's position as one of the world's leading solar panel producers and would also help the company to appear as a one-stop-shop for photovoltaic (PV) solar technologies.

Toshishige Hamano, Sharp's executive vice president in charge of overseas business, said that the two firms were aiming to finalise the deal subject to regulatory approval by the end of this year.

"It is essential for Sharp to function as a developer in the photovoltaic field, in order to further expand its business in this area," Hamano said in a statement, “adding that the acquisition meant Sharp would establish itself as a total solutions company in the photovoltaic field, providing solar panels as well as developing and marketing power generation plants.”

Recurrent on the other hand, hopes the deal will help boost its plan to become a leading solar generating company. This San Francisco-based firm has 2GW of projects in the pipeline across the US and Canada and is in the process of developing other businesses in Europe. The company is majorly owned by Hudson Clean Energy Partners, which welcomed the deal as a step to accelerate Recurrent's growth.

The acquisition is a step in global expansion drive of Sharp's solar division. Last month, Sharp announced plans to double production capacity at its Welsh solar cell plant and along side formed a $198m joint venture with Italian renewable energy giant Enel Green Power (EGP) and components provider STMicroelectronics, which is designed to establish the company as a major player in the fast-expanding Italian market. The company is also interested and looking forward to build its position in the North American PV market, which it expects to grow significantly with soaring demand for both rooftop solar panels and utility-scale solar PV plants.