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Siemens starts negotiations on potential acquisition of Gamesa

CTBR Staff Writer Published 01 February 2016

Siemens has reportedly begun negotiations to acquire Gamesa, a move that is expected to create the world’s largest wind turbine manufacturer.


Citing Gamesa, the Wall Street Journal reported that both the companies are contemplating plans to combine their wind energy businesses.

If the deal goes ahead, Siemens will have access to emerging markets where Gamesa has stronger footprint.

The transaction may, however, face hurdles as Siemens shareholders are currently focusing on improving the company's profitability.

Spanish utility Iberdrola would play a key role in the deal as it is the majority shareholder in Gamesa, with a 20% stake, according to the publication.

The details about the structure and financial terms of the deal have not been disclosed.

Business advisory firm FTI Intelligence was quoted by The Wall Street Journal as saying: "Siemens and Gamesa together would have around 15% of the global wind market on current market shares, easily outstripping market leader Vestas and General Electric."

Goldman Sachs and Morgan Stanley are acting as advisers to Siemens and Gamesa respectively on the potential deal.

Siemens'wind and renewables business had generated €5.66bn in revenue for the fiscal year that ended in September, while the company's overall revenue was €75.6bn.

Gamesa generated €2.5bn in revenue for the first nine months of last year.

Gamesa has production centers in Spain and China. The company also has local manufacturing capacity in India and Brazil.

To date, Gamesa installed more than 7,000MW turbines globally.

Image: Siemens and Gamesa are contemplating plans to combine their wind energy businesses. Photo: courtesy of Photokanok / FreeDigitalPhotos.net.