Arab Today, arab today gamesa siemens join forces to create global wind power leader
Last Updated : GMT 03:43:57
Arab Today, arab today
Arab Today, arab today

Gamesa, Siemens join forces to create global wind power leader

Arab Today, arab today

Arab Today, arab today Gamesa, Siemens join forces to create global wind power leader

Gamesa, Siemens join forces to create global wind power leader
Madrid - Arab Today

Spanish renewable energy group Gamesa and German engineering giant Siemens said they have agreed to combine their wind power businesses to create one of the world’s largest makers of wind turbines.

The announcement followed months of negotiations between the two companies and it comes as demand for wind power surges with countries developing more renewable energy to comply with emissions cut targets.
“Siemens and Gamesa have signed binding agreements to merge Siemens’ wind business with Gamesa,” the Spanish group said in a statement on its website.
In a statement issued in Germany, Siemens said it would pay 3.75 euros per share to Gamesa’s shareholders. With just over 279 million shares in issue, that would represent a total cash payment of just over one billion euros ($1.12 billion).
Siemens, Europe’s biggest engineering company, will hold 59 percent of the new wind venture and Gamesa shareholders the other 41 percent, the two sides said.
The new company was expected to have an installed base of 69 gigawatt (GW) worldwide, an order backlog of around 20 billion euros, revenues of 9.3 billion euros and underlying or operating profit of 839 million euros, Siemens said.
It would have its legal domicile and global headquarters in Spain and will remain listed in Spain.
Its offshore headquarters would reside in Hamburg, Germany, and Vejle, Denmark.
Gamesa shares were suspended Friday from trading on the Madrid stock exchange. Siemens shares rose 1.19 percent to 91.97 euros in mid-afternoon trade in Frankfurt.
“The two businesses are highly complementary in terms of global footprint, existing product portfolios and technologies,” Siemens said.
“The combined business will have a global reach across all important regions, and manufacturing footprints in all continents.”
Siemens’ wind power business had a strong foothold in North America and Northern Europe, and Gamesa was well positioned in fast-growing emerging markets such as India and Latin America, and in Southern Europe, the statement said.
“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,” said Siemens chief executive Joe Kaeser.
To simplify the merger, French group Areva has been given a period of three months to decide whether to sell its stake in Adwen, an offshore wind power joint venture with Gamesa, or take it over completely.
It could either sell its 50-percent stake or buy Gamesa’s 50-percent stake in that period, Siemens said.
“Alternatively, Areva can in this time divest 100 percent of Adwen to a third party via a drag-along right for Gamesa’s stake.”
Gamesa was hit hard by deep cuts to Spanish government subsidies for electricity produced from renewable sources, after the country’s economy slumped when the decade-long property bubble burst in 2008.
After posting a new loss in 2013, the company which is based in Spain’s northern Basque region changed its board and restructured. Last year it posted a net profit of 170 million euros ($191 million).
“Gamesa needs financial support to develop in the offshore sector,” said Angel Perez, an analyst with Spanish brokerage firm Renta 4.
The merger had been expected for months as Gamesa confirmed in January that it was in talks with Siemens to combine their wind activities.
But it had been held up because of Gamesa’s joint venture with Areva.
Global wind energy capacity will nearly double in the next five years, largely led by further market growth in China, the Global Wind Energy Council, a Brussels-based industry group, said in April.
Cumulative wind energy capacity will rise to around 792 gigawatts (GW) by the end of 2020 from 433 GW at the end of 2015 as countries develop more renewable energy to comply with emissions cut targets and prices continue to fall, it said in the report.
Last year in Paris, almost 200 countries agreed a landmark deal to cut greenhouse gas emissions from 2020 with the aim of limiting global warming.
The Gamesa-Siemens deal is the latest in a string of tie-ups in the wind power sector.
Last year German turbine maker Nordex bought the wind power business of Spain’s Acciona.
General Electric in 2015 boosted its offshore wind turbine portfolio when it completed the purchase of French firm Alstom’s energy business.

Source: Arab News

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gamesa siemens join forces to create global wind power leader Arab Today, arab today gamesa siemens join forces to create global wind power leader

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 12:25 2017 Thursday ,23 February

Bharti Airtel buys Telenor's India operations

GMT 10:47 2017 Thursday ,23 February

Saudi Aramco may offer discounted shares to citizens

GMT 06:25 2017 Thursday ,23 February

Bupa Arabia sponsors SMEA forum

GMT 06:11 2017 Thursday ,23 February

Football: Turkish company wins Qatar World Cup contract

GMT 05:46 2017 Thursday ,23 February

SABIC net profits fall in 2016

GMT 21:01 2017 Wednesday ,22 February

Saudi Aramco mulls offering citizens discounted shares
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday