Siemens Energy confirms bid for SGRE

4C Offshore | Tom Russell
By: 23/05/2022 Siemens Energy

Siemens Energy AG (Siemens Energy) has announced a cash tender offer to acquire all outstanding shares in Siemens Gamesa Renewable Energy, S.A. (SGRE), approximately 32.9 percent of SGRE’s share capital, which it does not already own. SGRE’s minority shareholders will be offered €18.05 per share in cash.

Following a successful closing of the transaction, Siemens Energy intends to pursue a delisting of SGRE from the Spanish stock exchanges, where it currently trades as a member of the IBEX 35 index.

According to Siemens Energy its offer is a response to SGRE’s recent financial performance issues, driven by operational challenges and industry-related headwinds and reflected in multiple profit warnings, increased the need for action. The integration aims to support management’s efforts to resolve the current challenges at SGRE by helping implement the necessary measures to stabilise the business and deliver on its full potential.

“The full integration of SGRE is an important milestone for Siemens Energy’s positioning as a driver of the energy transition from fossil to sustainable energy solutions. This will benefit customers, employees, shareholders, and ultimately society. It is critical that the deteriorating situation at SGRE is being stopped as soon as possible, and the value-creating repositioning starts quickly. The Supervisory Board strongly supports the Executive Boards plans for the integration of SGRE,”
said Joe Kaeser, Chairman of the Supervisory Board of Siemens Energy AG.

After full integration, Siemens Energy expects the combined Group to benefit from expected cost synergies of up to approximately €300 million per annum within three years. In addition, revenue synergies of a mid-triple-digit million € amount are expected by the end of the decade.

“The integration of SGRE is an important step on our strategic roadmap to lead the energy transition. As an integrated group with a more holistic offering, we will be even better positioned to support our customers on the way to a more sustainable future. This transaction comes at a time of major changes affecting global energy. Our conviction is that the current geopolitical developments will not lead to a setback to the energy transition. Accelerating renewables will play a key role in this journey. Joining forces with SGRE will benefit both companies and all stakeholders,”
said Christian Bruch, CEO of Siemens Energy.

Over 1,000 Siemens Gamesa Direct Drive offshore wind turbines have been installed in all major offshore wind markets globally. They include the UK, Germany, Denmark, the Netherlands, Belgium, and Taiwan, among others. Furthermore, Siemens Gamesa stated it has orders for over 1,000 more Offshore Direct Drive turbines.

The transaction is expected to close during the second half of 2022.