Siemens Energy launches EUR 4bn bid for ailing Gamesa
By Josh White
Date: Monday 23 May 2022
(Sharecast News) - Siemens Energy announced a €4.05bn (£3.43bn) bid for the rest of Siemens Gamesa over the weekend, as the ailing wind turbine engineer faced mounting issues with its operations and ongoing product delays.
The DAX-listed Siemens Energy owns 67% of the Madrid-traded Siemens Gamesa, after it was spun off from its former parent Siemens AG in 2020.
It announced the €18.05-per-share bid on Saturday, according to Reuters, at a 7.8% premium to Gamesa's closing price on Friday.
Despite being two-thirds majority shareholder, Reuters said Siemens Energy had struggled to significantly influence decisions at Siemens Gamesa, which has warned on profits three times in the last year.
It said it was looking to finance up to €2.5bn of the transaction with equity instruments, and the rest with debt and its existing cash facilities.
"This transaction comes at a time of major changes affecting global energy," said Siemens Energy chief executive officer Christian Bruch.
"Our conviction is that current geopolitical developments will not lead to a setback to the energy transition."
The company said the deal was expected to close in the second half of the year.
Siemens Energy was spun out of the former gas and power division of Siemens AG in April 2020, with the latter maintaining a 35% shareholding, while Siemens Gamesa was born out of a merger between Gamesa and Siemens Wind Power in 2016.
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