Siemens and Gamesa to merge wind businesses

Accordingly, Siemens will receive newly issued shares of the combined company and will hold 59 per cent of the share capital while Gamesa’s existing shareholders will hold 41 per cent.

As part of the merger, Siemens will fund a cash payment of €3.75 ($4.2) per share, which will be distributed to Gamesa’s shareholders immediately following the completion of the merger.

The combined company will have its legal domicile and global headquarters in Spain and will remain listed in Spain.

The combined company will have a global reach across all important regions, and manufacturing footprints in all continents. Siemens’ wind power business has a strong foothold in North America and Northern Europe, and Gamesa is well positioned in fast-growing emerging markets, such as India and Latin America, and in southern Europe.

Further, the transaction will result in a product offering covering all wind classes and addressing all key market segments to better serve our customer’s needs.

“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. The combined business will fit right into our Siemens Vision 2020 and underlines our commitment to affordable, reliable and sustainable energy supply,” said Joe Kaeser, president and CEO of Siemens AG.

Siemens and Gamesa expect significant synergy potentials in a combined setup. In total, annual EBIT (earnings before interest and taxes) synergies of €230 million ($258 million) are expected the fourth year after the closing of the deal.

“Teaming up will enable Siemens and Gamesa to offer a much broader range of products, services and solutions to meet customer requirements. The move will put Siemens and Gamesa in the best position to shape the industry for lower cost of renewable energy to the consumers," said Lisa Davis, member of the Managing Board of Siemens AG.

The envisaged combination is unanimously supported by Gamesa's Board of Directors and Siemens' Supervisory Board. Closing is expected in the first quarter of calendar year 2017.