Siemens and Gamesa to Merge Wind Businesses

Siemens wind turbine

Siemens (NYSE: SI) and Gamesa signed binding agreements to merge their wind power businesses.

As part of the deal, Siemens will hold a 59 percent stake and consolidate the merged company, while Gamesa shareholders will own the remaining 41 percent. Once the merger is completed, Gamesa shareholders will receive a cash payment of €3.75 ($4.23) per share funded by Siemens. Gamesa and Areva signed agreements whereby Areva waives existing contractual restrictions in Gamesa’s and Areva’s offshore wind joint venture Adwen. Gamesa grants Areva a put option for Areva’s 50 percent stake and a call option for Gamesa’s 50 percent stake in Adwen. Both option expire in three months. Alternatively, Areva can divest 100 percent of Adwen to a third party via a drag-along right for Gamesa’s stake.

The combined company will have its global headquarters in Spain. Headquarters for the onshore division will be in Spain, while the offshore division will be in Germany and Denmark. The new company is also expected to have a 69 GW installed base worldwide, an order backlog of around €20 billion ($22.6 billion) and revenue of €9.3 billion ($10.5 billion).

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