Saturday, June 18, 2016

Siemens and Gamesa join forces to create global giant wind sector – Management Journal

This operation “means the birth of a company that already occupies a leading position globally,” said CEO of Gamesa, Ignacio Martin.

Gamesa seeks with this agreement strengthen its weakest point: the maritime wind energy sector. (Reuters)

Madrid ( AFP ) .- The Spanish group Gamesa and German Siemens today announced their merger to create a global giant wind sector, which will respectively have 41% and 59%, at a time of boiling of renewable energy.

This operation “means the birth of a company which already occupies a leading position globally, “said CEO Gamesa , Ignacio Martin, in a video statement sent by the Spanish group.

is” to join forces between a German company and a Spanish company in a merger in which, with an industrial logic, we share strengths and reduce the risks that can have within the company, “he said.

the Spanish group this agreement seeks to strengthen its weakest point: the offshore wind sector. She expects him capacity in fields of wind turbines “offshore” multiplying in Europe between 2014 and 2018.

According to the details of the agreement, Siemens will pay about one billion euros (US $ 1.125 million) to Gamesa and POSERA 59% of the new entity.

“The current shareholders of Gamesa will have 41%,” said the Spanish group said in a statement. Of these, 8% correspond to the Spanish energy group Iberdrola, currently the largest shareholder in Gamesa.

Wind aspect was so far the smallest and least profitable of the eight divisions of the German conglomerate, which manufactures industrial systems , medical and trains scanners

Siemens , which in 2014 tried to buy unsuccessfully French Alstom, now with Gamesa a supplementary agreement. the Spanish is among the top five global manufacturers of wind turbines, while Germany is a leader in offshore wind farms ( “offshore”)

also, Gamesa has another attraction. its strong presence in emerging countries where the demand for renewable energy is seething. In India leads the industry in China is the first foreign manufacturer and is well established in Brazil, with numerous fields onshore turbines.

The Spanish economic crisis caused difficulties for Gamesa, which saw were reduced drastically subsidies for renewable energies and even closed with net losses in 2012.

But after a major restructuring, with change of address included, in 2015 achieved a net profit of 170 million euros.

And for further development, this merger with Siemens is helpful, estimated Angel Perez, an analyst at Renta 4.

broking “ Gamesa is very good in your business ‘onshore’ . To go to business offshore, you need is adquerir financial muscle, “he says.

Concentration sector.
This agreement was expected for months. In late January, Gamesa confirmed the existence of negotiations.

However, negotiations had not progressed much since. To do this, you had to find a solution to Adwen, a company founded jointly in 2015 by Gamesa and France’s Areva to regroup its assets in the offshore wind sector.

The French authorities fear that the alliance between Gamesa and Siemens endanger Adwen projects to implement new factories in the country’s northwest. Industrial capacities of the German conglomerate would suffice to equip the fields of wind turbines in France without further production plants.

The sector of renewable energy is in full swing for several years and awakens even more interest after global climate agreement reached in December in Paris at cop21.

Wind turbine manufacturers experience a major movement of concentration.

long dominated by Europeans, industry observed growth of Chinese builders, as Goldwind, United power and Ming Yang, who benefit from the massive development of wind energy in China, which in 2015 provided half of the installed capacity in the world.

in 2015, the German manufacturer Nordex Spanish conglomerate Acciona and unified its wind activities, while the US General Electric expanded its “offshore” buying energy assets side of Alstom. Is said to be also interested in buying Adwen.

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