Germany-based Siemens has signed an agreement with Spanish wind turbine manufacturer Gamesa to combine their offshore and onshore wind power businesses in a bid to create a major wind power player.
Under the deal, Siemens will fund €3.75 per share to shareholders of Gamesa and will have 59 stake in the merged entity.
Gamesa’s existing shareholders will control the remaining 41% share.
Gamesa noted that the combination will create a wind power company with a 69GW of global installed base, an order backlog of nearly €20bn and revenue of €9.3bn as well as an adjusted EBIT of €839m.
Subject to approval by Gamesa’s shareholders and other customary conditions including approval from the Spanish stock market regulator (CNMV), the deal is expected to complete in the first quarter of next year.
Siemens president and CEO Joe Kaeser said: "The combination of our wind business with Gamesa follows a clear and compelling industrial logic in an attractive growth industry, in which scale is a key to making renewable energy more cost-effective.
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By GlobalData"With this business combination, we can provide even greater opportunities to the customers and value to the shareholders of the new company.
"The combined business will fit right into our Siemens Vision 2020 and underlines our commitment to affordable, reliable and sustainable energy supply."
The merged entity will be benefitted from Siemens’ experience in wind power business in North America and Northern Europe, and Gamesa’s position in India, Latin America and in Southern Europe.
Once formed, the combined company will have headquarters in Spain, with onshore headquarters to be located in Spain and the offshore headquarters to be based in Hamburg, Germany, and Vejle, Denmark.
In addition to the deal, Gamesa and French multinational group Areva has entered into contractual agreements, through which Areva waives existing contractual restrictions in Gamesa’s and Areva’s offshore wind joint venture Adwen.
Further, Spanish public multinational electric utility Iberdrola has signed a shareholders’ agreement with Siemens and will have 8% stake in the combined company upon completion of the deal.
