Siemens is to acquire Iberdrola’s 8.1% stake in turbine manufacturer Siemens Gamesa.
The German engineering giant’s supervisory board approved the purchase today at €20 per share, a 32% premium on a 30-trading average for the hardware outfit, bringing its shareholding in the company to 67%.
Siemens will pay €1.1bn from its own resources and will eventually move all shares in the turbine manufacturer to its Gas and Power business, which is to be spun off and listed.
The latter move will create a pure-play energy company, the company said. “No mandatory takeover offer to SGRE’s external shareholders is planned.”
All legal disputes between Iberdrola and Siemens Gamesa will be settled as part of the deal and the Spanish developer has also signed a cooperation agreement with the two other companies covering exclusive negotiations rights for wind and grid support.
“Siemens expects that additional annual savings of up to €100 million can be realised by unwinding the shareholder agreement and through intensified cooperation between Siemens and Siemens Gamesa, resulting in a net present value of about €900 million,” said Siemens.
Siemens chief executive Joe Kaeser said: “SGRE is a vital cornerstone in the new Siemens Energy portfolio in order to shape the necessary energy transition from conventional to renewable energy. Time has come to take this mission to the next step.”
Siemens Energy designate chief Michael Sen added: “2020 is a pivotal year in which climate protection has reached the top of the global agenda. We are convinced that the energy transition offers many opportunities for Siemens Energy.
“With our diverse and constantly growing renewables portfolio we can deliver tailored solutions for low carbon leaders and energy seeking countries alike.”