Siemens Gamesa ditching wind farm development biz - report

Wind turbine manufacturer Siemens Gamesa Renewable Energy SA (BME:SGRE) is looking to sell its wind farm development business and has retained Bank of America as advisor in the process, Reuters reported on Thursday citing sources familiar with the alleged deal.

Initial bids are supposed to land on Siemens Gamesa’s table today, the sources told the news agency.

Siemens Gamesa, which declined to respond to Reuters’ inquiries, is reportedly in possession of a pipeline of projects totalling over 3 GW in Spain, France, Italy and Greece, according to the sources.

A deal of this size could be worth up to EUR 300 million (USD 339.8m), Reuters reported, adding that some its sources claim that it could even reach EUR 500 million.

The rumour is that Cubico Sustainable Investments, multi-energy company Repsol SA (BME:REP), Macquarie Group Ltd’s (ASX:MQG) infrastructure and real assets arm, utilities Naturgy Energy Group SA (BME:NTGY), EDP SA (ELI:EDP), Verbund AG (VIE:VER) and Iberdrola SA (BME:IBE) are some of the companies interested in placing their bids. These either declined to comment or did not respond immediately to Reuters’ requests for comment, the report stated.

Siemens Gamesa had its financial ups and downs over the past year as it grappled with high prices of raw materials, project execution challenges and supply chain disruptions due to the COVID-19 pandemic. Reuters’ sources said the sale of the wind farm development unit would help the turbine maker focus on bringing its core business to profitability.

(EUR 1.0 = USD 1.133)

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