In a move that’s sure to require some shrimp on the Barbie. U.S.-based Westinghouse Solar Inc. and Australian-based CDB Energy have signed a letter of intent to merge. The agreement will allow both companies a chance to expand their reach internationally.

Westinghouse Solar is a PV manufacturer that specializes in AC PV modules—modules with microinverters. And CBD is a renewable energy company that specializes in wind, solar and other forms of renewable energy.

The proposed merger builds on the relationship established late last year, when CBD Energy invested $1 million in Westinghouse Solar.

“They’re looking to expand their reach internationally. This is a great way for them to enter into the U.S. market with an established company,” said Westinghouse Solar’s Vice President of Marketing Gary Mull. “Given their background and the market opportunity in the U.S. it’s understandable why they’re looking for an opportunity with a company like Westinghouse.”

One of the attractions is Westinghouse’s name, according to Mull. Westinghouse Solar isn’t owned by the Westinghouse parent company.

“We had a licensing agreement with Westinghouse to continue to sell under their brand,” he said. The company will retain the name. “It’s one of the components that makes this very attractive for CBD.”

The merger could also help CBD, which has developed projects in multiple countries, gain a foothold in the larger American market, like Canada and Latin America. Though their primary market will be the U.S., according to Mull.

Westinghouse Solar also will gain access to the international market with the merger.

“Two primary advantages that a merger like this provides, is that as a larger more diversified business, there’s opportunity to expand our geographic presence as well. Our market really had been U.S. But it opens up all the markets CBD has been in, particularly Australia,” Mull said.

The other benefit for Westinghouse Solar is allowing the company to speed development of new products.

Under the proposed merger, Westinghouse Solar shareholders would receive shares of common stock in CBD Energy in exchange for their shares of Westinghouse Solar, according to Westinghouse Solar.

CBD would own 85 percent of the combined entity’s stock Westinghouse Solar’s equity holders would own 15 percent of the stock. The companies plan to finalize the merger agreement in early March, with completion of the merger targeted for the third quarter of 2012.