Siemens Energy Makes $4.3bn Bid For Siemens Gamesa

Siemens Energy has made a cash tender offer to acquire all outstanding shares in Siemens Gamesa Renewable Energy.

The 4.05 billion euro bid comes as Siemens Gamesa struggles with poor performance and financial headwinds, a situation that appears to be showing no signs of recovery.

The integration will see SGRE’s minority shareholders offered €18.05 per share in cash.

Siemens Energy will move to simplify processes and streamline governance with the aim to improve profitability. Furthermore, Siemens Energy will have the opportunity to stabilise Siemens Gamesa by adding expertise relating to operations, supply chain management and manufacturing and will allow a combined positioning to capture market opportunities.

After full integration, the combined group may benefit from expected cost synergies of up to approximately €300 million ($319 million) per annum within three years, according to Siemens Energy.

The transaction is expected to close in the second half of 2022, after which Siemens Energy intends to delist SGRE from the Spanish stock exchanges.

Joe Kaeser, chairman of the supervisory board of Siemens Energy AG, said in a statement: “The full integration of SGRE is an important milestone for Siemens Energy’s positioning as a driver of the energy transition from fossil to sustainable energy solutions…It is critical that the deteriorating situation at SGRE is being stopped as soon as possible, and the value-creating repositioning starts quickly.

The transaction will align with Siemens Energy’s objective to strengthen its position as a holistic energy solutions business and will allow them to maximise opportunities offered by the wind sector to decarbonise the energy system.