Siemens Gamesa has entered an exclusivity agreement with troubled turbine manufacturer Senvion to negotiate the acquisition of selected parts of the latter’s services and onshore wind businesses.
The agreement was approved unanimously by Senvion creditors on 11 September. The specific elements of any potential deal have not been disclosed.
Senvion, which entered self-administration earlier this year, said “final negotiations” with its German-Spanish rival are underway. A final deal could be struck by the end of September, subject to final agreement.
The financial arrangements for Senvion to secure ongoing business activities over the timeline to conclude on the offer continue to be in place, the company added.
“Wind turbine continuation projects are underway and will secure a majority of production jobs for the next months, with some going into 2020. For the remaining business areas, the company continues to explore further options and negotiations with investors.”
Siemens Gamesa confirmed it has entered into “exclusive non-binding negotiations” with Senvion with “respect to a potential acquisition from Senvion of selected services and onshore assets in Europe, free of financial debt”.
“If negotiations succeed and final agreement is reached, a binding decision would be taken within the next weeks,” Siemens Gamesa said.
It added that an eventual transaction would have no financial impact on fiscal year 2019 accounts.
Senvion chief executive Yves Rannou said: “Today’s announcement means that we are close to finding a safe harbour for a significant part of the business and substantial parts of its employee base.
“In these difficult circumstances, these are positive news. Looking ahead to the weeks to come, the management team will continue to put all efforts behind finding the best solutions possible for the rest of the business.”