Integration should lead to business stability
The group emphasized that the planned merger would facilitate taking “necessary measures” to stabilize the business. Gamesa will benefit from closer engagement – particularly in the areas of production, supply chain, project management and clients. Energy also hopes for cost and revenue synergies.
Munich residents have long been trying to control the situation in Gamesa. Among other things, energy managers have moved to senior positions in Spain. So has Jochen Eckholt, who has been president at Gamesa since the beginning of March. In the meantime, there has also been speculation about whether Siemens Energy will not completely split from Siemens Gamesa. Perhaps there is no longer any talk of it, instead there is a clear commitment to wind energy. Siemens Energy currently owns 67 percent of the Spanish subsidiary. Major fund Blackrock and Norges are the only minority shareholders with more than one percent of the shares.
Presenting second-quarter numbers in mid-May, Siemens CFO Ralf Thomas put pressure on Gamesa’s management: “We are in no way satisfied with the current development,” he said. “And we’re certainly not the only contributors who feel this way.” Siemens still owns 35 percent of Siemens power and is feeling the effects of the poor numbers at Gamesa.
The acquisitions turned out to be cheap
In addition to more direct action against Gamesa, the revocation of reporting obligations could have played a role as well. Additionally, Gamesa’s shares have recently lost a lot of their value in light of the problems the company is experiencing. A full takeover will be cheaper in return.
Despite the favorable conditions, financing the acquisition is a feat of strength, because Siemens Energy itself is currently in the red. Both Bank of America and JPMorgan have already made firm commitments.
Siemens Energy has set September as the target date for the show to begin. This is also due to the fact that the supervisory authority on the Spanish stock exchange still needs time to examine the offer. According to Spanish stock exchange law, 75 percent of shares can be delisted. If all goes well, the show could end in October and, if successful, be completed by the end of the year.