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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Spanish renewable energy company and wind turbine maker Gamesa Corporation Technology S.A. (MCE:GAM) (Zamudio, Spain) has confirmed it has had talks with German engineering firm Siemens AG (FWB:SIE) (Munich, Germany) about a potential merger.
The company confirmed via a regulatory filing that talks have taken place but that an agreement has not been reached. Siemens has declined to comment. If successful, a merger of their respective wind businesses would create the world's largest player in the sector.
"In relation to the news and rumours about a possible corporate transaction between Gamesa Corporation Technology and Siemens AG, we hereby inform you that, in the ordinary course of its activity, the company regularly analyses the various strategic opportunities presented for the group", the company stated to Spain's financial regulator, the National Securities Market Commission. "At the date of this communication it has not taken any decision and no agreement has materialised."
Siemens, according to Make Consulting, was the largest turbine manufacturer by installations in 2014 with almost 11% of the market, while Gamesa controlled 4.2% and held seventh spot. Siemens is very strong in the growing offshore wind sector in Europe, while Gamesa has a much stronger presence in the onshore sector. Gamesa has been very 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 wind sector. Siemens' wind business has been having trouble growing its business in recent years.
Last week, Siemens' reported first quarter 2016 financial results, which showed profits of 51 million euro ($55.6 million) for its wind power and renewables division, a drop of 31% on the same period a year ago. Siemens group chief executive officer Joe Kaeser said the drop was "due in part to timing effects related to project execution". He added: "As expected, revenue at Wind Power and Renewables declined. This had a corresponding impact on profit development. But orders were up sharply. They included a major order in the UK: our volume for the Galloper offshore windfarm project is 1 billion euro ($1.1 billion) and includes a long-term service contract."
Galloper is a 336-megawatt (MW) offshore project located 27 kilometers (km) off the coast of Suffolk, in the east of England. The project had been cancelled in 2014 by lead developer RWE AG (FWB:RWE) (Essen, Germany), but it was resurrected last year after finding new partners, including Siemens. For additional information, see October 15, 2014, article - Galloper Offshore Windfarm Cancelled. The company will install 56 of its 6-MW turbines and provide a 15-year maintenance contract.
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 europe@industrialinfo.eu or visit us online at Industrial Info Europe.
The company confirmed via a regulatory filing that talks have taken place but that an agreement has not been reached. Siemens has declined to comment. If successful, a merger of their respective wind businesses would create the world's largest player in the sector.
"In relation to the news and rumours about a possible corporate transaction between Gamesa Corporation Technology and Siemens AG, we hereby inform you that, in the ordinary course of its activity, the company regularly analyses the various strategic opportunities presented for the group", the company stated to Spain's financial regulator, the National Securities Market Commission. "At the date of this communication it has not taken any decision and no agreement has materialised."
Siemens, according to Make Consulting, was the largest turbine manufacturer by installations in 2014 with almost 11% of the market, while Gamesa controlled 4.2% and held seventh spot. Siemens is very strong in the growing offshore wind sector in Europe, while Gamesa has a much stronger presence in the onshore sector. Gamesa has been very 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 wind sector. Siemens' wind business has been having trouble growing its business in recent years.
Last week, Siemens' reported first quarter 2016 financial results, which showed profits of 51 million euro ($55.6 million) for its wind power and renewables division, a drop of 31% on the same period a year ago. Siemens group chief executive officer Joe Kaeser said the drop was "due in part to timing effects related to project execution". He added: "As expected, revenue at Wind Power and Renewables declined. This had a corresponding impact on profit development. But orders were up sharply. They included a major order in the UK: our volume for the Galloper offshore windfarm project is 1 billion euro ($1.1 billion) and includes a long-term service contract."
Galloper is a 336-megawatt (MW) offshore project located 27 kilometers (km) off the coast of Suffolk, in the east of England. The project had been cancelled in 2014 by lead developer RWE AG (FWB:RWE) (Essen, Germany), but it was resurrected last year after finding new partners, including Siemens. For additional information, see October 15, 2014, article - Galloper Offshore Windfarm Cancelled. The company will install 56 of its 6-MW turbines and provide a 15-year maintenance contract.
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 europe@industrialinfo.eu or visit us online at Industrial Info Europe.
