Siemens Energy to take wind-power subsidiary off stock exchange

Siemens Energy on Monday said it will buy up the remaining shares in its wind-energy subsidiary Siemens Gamesa and take the struggling Spanish subsidiary off the stock exchange.

The deal would cost the German parent around four billion euros ($4.3 billion), CEO Christian Bruch said in a call with reporters.

Siemens Energy, which already holds 67 percent of Gamesa, will offer to purchase the remaining shares for 18.05 euros ($19) a piece, the group had said in a statement on Saturday.

The Munich-based manufacturer, whose products include gas turbines, steam turbines and generators, has been dragged down by the poor financial performance of Siemens Gamesa.

In April, Gamesa issued the latest in a series of profit warnings as it took account heavy losses over the first three months of 2022.

“Supply chain constraints and inflationary pressures” that have swept through industry of late had contributed to Gamesa’s troubles, Bruch said.

Siemens Energy was working on the “turn around” of the Spanish subsidiary, while aiming “to fix operational problems” at Gamesa.

The parent group said it expected the deal to be wrapped up in the second half of the year.

Siemens Energy closed down 0.74 percent at 16.81 euros on the Frankfurt Stock Exchange on Monday, while Siemens Gamesa was trading close to the offer price in Madrid, up 6.2 percent percent at 17.79 euros.

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