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Siemens Energy wants to take wind power subsidiary Gamesa off the stock exchange


Siemens Energy is offering around four billion euros for the remaining shares in its Spanish subsidiary Gamesa. Despite the planned energy transition, the wind power company is in a crisis.

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End of independence: wind turbine in front of the Gamesa headquarters in Zamudio, Basque

Photo: Vincent West/ REUTERS

The energy technology manufacturer Siemens Energy wants to take over its loss-making wind power subsidiary Siemens Gamesa completely.

The Dax group, which already owns around two thirds (67 percent) of the Gamesa shares, said on Saturday that it was offering 18.05 euros per share for the rest. That corresponds to around four billion euros.

After the takeover, Gamesa is to be taken off the stock exchange.

The full integration of the wind power company is "an important milestone in the orientation of Siemens Energy as a designer of the energy transition from fossil to sustainable energies," explained the company's Supervisory Board Chairman, Joe Kaeser.

Siemens Gamesa Renewable Energy (SGRE) is based in the Spanish Basque Country.

The company manufactures wind turbines for land and sea and is one of the largest suppliers worldwide.

In 2017, Siemens had merged its own wind power division with Gamesa, but at the time left the Spaniards the headquarters of the combined company and management of the onshore business.

Siemens Energy lowered its forecast last week when it presented its quarterly figures because of Gamesa's "disappointing results".

Sales and operating earnings are therefore likely to be at the lower end of the forecast ranges given so far.

CEO Christian Bruch said that Gamesa's results were "once again" disappointing and had a "significant" impact on Siemens Energy.

With a complete takeover of Gamesa, Siemens Energy could take stronger action.

In addition, the company is hoping for synergy effects, i.e. saving costs, but also generating more sales.

Most recently, the subsidiary had hailed the quarterly figures from the parent company four times in a row.

The onshore wind power business in particular is struggling with costs and production difficulties.

The industry association WindEurope complains that the construction of new wind turbines in Europe is falling far short of the forecasts and the political goals of the EU.

At the same time, the Chinese competition manages to offer their systems at significantly lower prices.

Due to the operational problems and the challenges of the industry, Gamesa is "currently in a difficult financial situation," according to Siemens Energy.

The people of Munich have been trying for a long time to get the situation at Gamesa under control.

Among other things, managers from Siemens Energy moved to top positions in Spain.

So does Jochen Eickholt, who has been boss at Gamesa since the beginning of March.

Completion planned for this year

As early as 2020, Siemens Energy bought its stake from the Spanish major shareholder Iberdrola.

There was constant speculation as to whether Siemens Energy would not be able to solve the problems at Gamesa more easily if the subsidiary were bought completely and taken off the stock exchange.

On May 18, Energy announced that it was considering such an offer, and the decision has now been made.

In addition to more direct action, the elimination of reporting obligations could also have played a role.

In addition, the Gamesa shares had recently lost a lot of value in view of the problems in the company.

A complete takeover would be correspondingly cheaper.

In a presentation published by Siemens Energy, the group names September as the target date for the start of the offer.

It could then end in October and, if successful, be completed by the end of the year.

Chairman of the Supervisory Board Joe Kaeser emphasized that "it is critical that the downward trend at SGRE is quickly stopped and the value-creating realignment is started quickly".

Therefore, the supervisory board "expressly supports the plans of the board of directors for the integration" of Gamesa.


Source: spiegel

All business articles on 2022-05-22

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