The merger talks between Siemens and Gamesa stumble at Adwen – Reuters Spain

By Andres Gonzalez and Alexander Hübner

MADRID / FRANKFURT (Reuters) – the merger talks that keep for weeks the Siemens and Gamesa industrial group to merge its wind business has found an obstacle in Adwen, marine joint venture wind that Spanish has with France’s Areva, said three sources with knowledge of the situation on Friday.

The main sticking point now is, according to sources, the French government Areva- core shareholder majority has not yet decided whether to sell its share in Adwen or buy the participation of Basque manufacturer (books valued at 74 million euros) to try to create a French champion in renewable energy.

“Everything else is done, including the agreement with the regulator ( CNMV) to avoid having to launch a takeover bid for 100% of Gamesa, “said a source close to Siemens. “But the question remains whether Areva wants to leave the joint venture with Gamesa”.

France, recent host a world summit on climate change, has lagged behind other European countries in the field of offshore wind power.

In this sense, another source directly involved in the negotiations between Gamesa and Siemens said the indecision of France on Adwen wind could jeopardize the country’s industrial development.

Gamesa and Siemens declined to comment. An Areva spokesman could not comment immediately.

Gamesa shares fell Friday from the opening after publishing expansion the merger was delayed by political uncertainty in Spain.

At 1502 hours, shares were down 3.7 percent though still they earn 17 percent since transcended the plans to merge with the wind energy business of Siemens over a month ago.

the union of Gamesa and Siemens wind would create a global leader in the field of turbines both onshore wind and marine, beating Denmark’s Vestas, with a presence in both mature North American markets and European and fast-growing markets such as India, Mexico and Brazil.

a wind combined Siemens-Gamesa introduced to the German in the nascent and huge market offshore French, but could also raise competition issues in this particular segment.

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