Siemens, Gamesa To Merge Wind Business

(RTTNews) - Siemens AG and Gamesa Corporación Tecnológica, Friday announced their agreement to merge. As per the deal, Siemens will hold 59 percent stake in the new company and Gamesa will have 41 percent stake. Gamesa shareholders will receive a cash payment of 3.75 per share euros funded by Siemens.

The companies expect annual EBIT synergies of around 230 million euros. The combined company will have its global headquarters in Spain and will remain listed in Spain. Onshore division will be in Spain and the offshore division will be in Germany and Denmark.

Additionally, Gamesa and Areva have entered into contractual agreements whereby Areva waives existing contractual restrictions in Gamesa's and Areva's offshore wind joint venture Adwen, simplifying the merger between Gamesa and Siemens.

Joe Kaeser, president and CEO of Siemens said, "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."