Under the terms of the deal, Siemens will fund €3.75 per share to shareholders of Gamesa and will have 59% stake in the combined company. Gamesa’s existing shareholders will hold the reaming 41% stake.
Gamesa expects the combination to create a wind power company with a 69GW of global installed base, an order backlog of €20bn ($22.5bn) and revenue of €9.3bn.
Siemens president and CEO Joe Kaeser 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.
"The combined business will fit right into our Siemens Vision 2020 and underlines our commitment to affordable, reliable and sustainable energy supply."
The combined entity will benefit from Siemens’ experience in wind power business in North America and Northern Europe, and Gamesa’s position in India, Latin America and in Southern Europe.
The combined company will have headquarters in Spain. The onshore headquarters will be located in Spain while the offshore headquarters will be in Hamburg, Germany, and Vejle, Denmark.
Separately, Iberdrola signed a shareholders’ agreement with Siemens and will have 8% stake in the combined company upon completion of the deal.
Scheduled to be completed in first quarter of 2017, the merger is subject to the approval by Gamesa’s shareholders and other customary conditions including approval from the Spanish stock market regulator (CNMV).
Siemems managing board member Lisa Davis said: "Teaming up will enable Siemens and Gamesa to offer a much broader range of products, services and solutions to meet customer requirements.
"The move will put Siemens and Gamesa in the best position to shape the industry for lower cost of renewable energy to the consumers."
Additionally Gamesa signed contractual agreements with Areva whereby the latter firm waives existing contractual restrictions in offshore wind joint venture with Gamesa known as Adwen.
Image: The new combined company is expected to have 69GW of global installed base. Photo: courtesy of Gamesa.
