Siemens to acquire Iberdrola’s stake in Siemens Gamesa Renewable Energy

The purchase price is €20 (US$22) per share, which corresponds to a 32% premium on top of the average Siemens Gamesa share price for the last 30 trading days. Siemens will pay the total amount of €1.1Bn (US$1.2Bn) from its own resources and all legal disputes between Iberdrola and Siemens will be settled.

In addition, Iberdrola, Siemens and Siemens Gamesa have signed a co-operation agreement that covers certain projects for wind power generation and improving distribution grids. For these projects, Iberdrola, as a customer of Siemens Gamesa and Siemens, will grant the companies exclusive negotiation rights for a limited period of time.

Siemens expects that additional annual savings of up to €100M (US$110) can be realised by unwinding the shareholder agreement and through intensified co-operation between Siemens and Siemens Gamesa, resulting in a net present value of about €900M (US$994M).

As part of the spin-off and subsequent public listing of its gas and power business, Siemens will contribute all its shares in Siemens Gamesa to the new company, Siemens Energy.

Siemens Energy, which will then hold about 67% of the voting rights at Siemens Gamesa, will have a two-thirds majority at the company’s annual general meeting. No mandatory takeover offer to external shareholders is planned.

Siemens chief executive officer and president Joe Kaeser said, “Way before anyone else, Siemens and Iberdrola have taken the first step towards consolidation in the sector.

“We have created a leading and robust supplier of renewable energy and believe that Siemens Gamesa has considerable potential to grow and create significant value.

“Siemens Gamesa is a cornerstone in the new Siemens Energy portfolio that will shape the necessary transition from conventional to renewable energy. The time has come to take this mission to the next step.”