March 13 (Renewables Now) - Spanish wind turbine maker Gamesa (BME:GAM) expects to complete its merger with the wind power business of Germany’s Siemens (ETR:SIE) in early April.
The two companies announced this today after the European Commission (EC) approved the pending transaction unconditionally. In a joint statement, Gamesa and Siemens said that they now have antitrust approvals in all required jurisdictions.
“This merger is designed to combine the complementary strengths of both companies to benefit our customers, shareholders, employees, and suppliers," said Lisa Davis, member of the Managing Board of Siemens.
Gamesa agreed to absorb Siemens Wind Power in exchange for newly-issued Gamesa shares in June 2016. This pending transaction will result in Siemens holding a 59% stake in Gamesa and consolidating the company in its financial statements. Iberdrola SA (BME:IBE), currently the largest investor in Gamesa, will in turn own an 8% interest.
The enlarged company will have a global installed base of 75 GW, an order book of EUR 20.9 billion (USD 22.3bn), revenue of EUR 11 billion and adjusted pro forma earnings before interest and tax (EBIT) of EUR 1.06 billion.
(EUR 1.0 = USD 1.067)