Released June 22, 2016 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--German engineering giant Siemens AG (FWB:SIE) (Munich, Germany) and Spanish renewable energy major Gamesa Corporation Technology S.A. (MCE:GAM) (Zamudio, Spain) have signed binding agreements to create what will be the largest wind energy company in the world.
The deal will see the wind businesses of both companies merge into one new entity, designed to push clear of rivals MHI Vestas Wind Systems A/S (OMX:VWS) (Aarhus, Denmark) and General Electric (GE) (NYSE: GE) (Fairfield, Connecticut) at the top of the global wind turbine marketplace. According to Make Consulting, Siemens was the largest turbine manufacturer by installations in 2014 with almost 11% of the market, while Gamesa controlled 4.2% and held seventh spot. GE and Vestas were placed second and third with shares of 10.2% and 10.1% respectively.
Siemens will control a 59% stake in the merged company, with Gamesa holding the remaining 41%. Based on totals from March, it will have a 69-gigawatt (GW) installed base worldwide, an order backlog of around 20 billion euro ($22.7 billion), revenue of 9.3 billion euro ($10.5 billion) and an adjusted earnings before interest and taxes (EBIT) of 839 million euro ($952 million). It will have its onshore headquarters located in Spain, while the offshore headquarters will reside in Hamburg, Germany, and Vejle, Denmark. Earlier this year, Industrial Info reported that both companies were in talks to build a wind energy "super-company.". For additional information, see February 4, 2016, article--Gamesa Confirms Merger Talks with Siemens.
Siemens is traditionally very strong in the growing offshore wind sector in Europe, while Gamesa has a much stronger presence in the onshore sector. The Spanish company has been successful in recent years in establishing footholds in emerging wind markets like the U.S., Latin America and China, while it holds the top spot in India's fast-growing wind sector.
"As a leading wind power player, especially in emerging markets, Gamesa is a perfect partner for us," commented Lisa Davis, member of the Managing Board of Siemens.
A potential stumbling block to the deal was removed after Gamesa and AREVA S.A. (EPA:AREVA) (Paris, France) reached an agreement whereby Areva waived contractual restrictions related to their joint venture company, Adwen (Bremen, Germany).
"Today, we are embarking on a new era, creating, alongside Siemens, a world-leading wind player," said Ignacio Martín, executive chairman and chief executive officer of Gamesa. "We will continue to work as before, albeit as part of a stronger company and with an enhanced ability to offer all of our customers end-to-end solutions."
"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," added Joe Kaeser, president and chief executive officer of Siemens. "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."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The deal will see the wind businesses of both companies merge into one new entity, designed to push clear of rivals MHI Vestas Wind Systems A/S (OMX:VWS) (Aarhus, Denmark) and General Electric (GE) (NYSE: GE) (Fairfield, Connecticut) at the top of the global wind turbine marketplace. According to Make Consulting, Siemens was the largest turbine manufacturer by installations in 2014 with almost 11% of the market, while Gamesa controlled 4.2% and held seventh spot. GE and Vestas were placed second and third with shares of 10.2% and 10.1% respectively.
Siemens will control a 59% stake in the merged company, with Gamesa holding the remaining 41%. Based on totals from March, it will have a 69-gigawatt (GW) installed base worldwide, an order backlog of around 20 billion euro ($22.7 billion), revenue of 9.3 billion euro ($10.5 billion) and an adjusted earnings before interest and taxes (EBIT) of 839 million euro ($952 million). It will have its onshore headquarters located in Spain, while the offshore headquarters will reside in Hamburg, Germany, and Vejle, Denmark. Earlier this year, Industrial Info reported that both companies were in talks to build a wind energy "super-company.". For additional information, see February 4, 2016, article--Gamesa Confirms Merger Talks with Siemens.
Siemens is traditionally very strong in the growing offshore wind sector in Europe, while Gamesa has a much stronger presence in the onshore sector. The Spanish company has been successful in recent years in establishing footholds in emerging wind markets like the U.S., Latin America and China, while it holds the top spot in India's fast-growing wind sector.
"As a leading wind power player, especially in emerging markets, Gamesa is a perfect partner for us," commented Lisa Davis, member of the Managing Board of Siemens.
A potential stumbling block to the deal was removed after Gamesa and AREVA S.A. (EPA:AREVA) (Paris, France) reached an agreement whereby Areva waived contractual restrictions related to their joint venture company, Adwen (Bremen, Germany).
"Today, we are embarking on a new era, creating, alongside Siemens, a world-leading wind player," said Ignacio Martín, executive chairman and chief executive officer of Gamesa. "We will continue to work as before, albeit as part of a stronger company and with an enhanced ability to offer all of our customers end-to-end solutions."
"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," added Joe Kaeser, president and chief executive officer of Siemens. "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."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
