Siemens in talks to acquire Gamesa to boost wind power business
German multinational conglomerate Siemens has reportedly started negotiations to acquire Spanish wind turbines manufacturer Gamesa in a bid to create the world’s largest wind turbine maker.
As part of this effort, Siemens is also planning to acquire Iberdrola's 19.7% stake in Gamesa, reported Spanish newspaper El Confidencial.
According to one of the undisclosed sources, Siemens is expected to hold more than 50% stake in Gamesa while the remaining interest will be held by Gamesa's shareholders.
The Wall Street Journal cited Gamesa as saying in a regulatory filing that Gamesa and Siemens are negotiating on "a potential integration of certain wind energy businesses" and a potential agreement is yet to be signed.
If the deal goes ahead, Siemens will have access to emerging markets where Gamesa has stronger footprint.
Reuters cited a source as saying that the new entity, which will be headquartered in Spain, is expected to significantly acquire Denmark's Vestas in a bid to become the world's biggest wind turbines manufacturer.
The details about the structure and financial terms of the deal have been undisclosed.
Business advisory firm FTI Intelligence said: "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 as well as Credit Suisse and Morgan Stanley are acting as advisers to Siemens and Gamesa respectively on the potential deal.
Image: Siemens intends to become the world's largest wind turbines manufacture. Photo: courtesy of dan/ FreeDigitalPhotos.net.