German firm Siemens and Spanish wind energy giant Gamesa merged their wind power divisions to produce a global wind energy giant. The merger’s product has a turnover of €9.3 billion for a pre-interest and pre-tax profit of €839 million, an order backlog valued at around €20 billion and 69 GW of installed plants worldwide. The new company will allow both firms to save up to €230 million, by 2020.

Siemens will hold a 59% stake in the new firm while Gamesa will hold the remaining 41%. Its onshore headquarters will be based in Spain and controlled by Gamesa while its offshore headquarters will be located in Germany and Denmark. Formalities for the creation of the giant should be completed by the beginning of 2017.

Let’s recall that Gamesa is one of the five leading global manufacturers of onshore wind turbines while Siemens is the leader in terms of offshore wind parks. The resulting company will thus benefit from the complementarity of the two firms considering that Siemens has a “strong presence across North America and Northern Europe while Gamesa is well-positioned in emerging markets such as India, South American and in Southern Europe”. The firm also has various renewable energy projects in Morocco.

Gwladys Johnson