German engineering giant Siemens today said it will merge its wind power business with Gamesa and will hold the controlling stake of 59 percent in the new company. Gamesa will have 41 percent stake.
The new company, which will be consolidated in Siemens’ financial statements, is expected to have a 69 GW installed base, an order backlog of around €20 billion, revenue of €9.3 billion and an adjusted EBIT of €839 million for last 12 months as of March 2016.
The global headquarters of the wind power technology giant will be in Spain and will remain listed in Spain. The onshore headquarters will be located in Spain, while the offshore headquarters will reside in Hamburg, Germany, and Vejle, Denmark.
Siemens’ wind power business has a strong foothold in North America and Northern Europe, and Gamesa is well positioned in emerging markets, such as India and Latin America, and in Southern Europe.
“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,” said Joe Kaeser, president and CEO of Siemens AG.
Siemens and Gamesa expect significant synergy potentials in a combined setup. In total, annual EBIT synergies of €230 million are expected in year four post closing.