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Siemens Energy launches bid to take over, delist wind turbine unit

May 23, 2022

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Siemens Energy AG launched a bid May 21 to take over and delist its struggling wind-turbine manufacturing unit Siemens Gamesa Renewable Energy SA in the hope that fully integrating the subsidiary will help accelerate its turnaround.

The voluntary cash tender offer of €18.05 per share amounts to about €4.0 billion for the 32.9% stake in Siemens Gamesa that Siemens Energy does not already own. It expects to complete the deal in the second half of 2022.

The price represents a 27.7% premium on the wind-turbine maker's closing price of €14.13 on May 17 — the day before Siemens Energy confirmed media reports about it planning a takeover bid, which boosted Siemens Gamesa's shares. The company's stock price had risen further to €17.80 by about 11:30 a.m. in Madrid on May 23, following Siemens Energy's announcement over the weekend.

In explaining the rationale for the bid, Siemens Energy CEO Christian Bruch pointed to the poor financial performance of Siemens Gamesa — evidenced by multiple profit warnings — as well as operational challenges and industrywide obstacles in the supply chain that will be easier to navigate when fully integrated.

After the takeover, Siemens Energy intends to be more closely involved in the wind unit's day-to-day operations. The deal will realize up to €300 million of annual cost synergies within three years after full integration, the company said in a news release, along with revenue synergies in the mid-triple-digit million euro range by the end of the decade.

[Alex Blackburne]

More: Siemens Energy launches €4B takeover bid for wind unit Siemens Gamesa

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