Siemens, Gamesa float wind mill company

Germany’s Siemens and Spain’s Gamesa announced plans to create the world’s biggest builder of wind farms on Friday, seeking to combine their respective strengths in offshore wind power and developing markets.

Siemens, which has struggled to make its wind turbine business profitable, will take a 60 per cent stake in the combined company.

In return for taking the leading role, Siemens will pay Gamesa’s shareholders, which include Spanish utility Iberdrola, $1.1 billion in the form of an extraordinary dividend, the source said.

The source added that Gamesa would serve as the vehicle for the combined business, with the Spanish group creating new shares to be offered to Siemens.

A Siemens-Gamesa JV, months in the making, would overtake Den-mark’s Vestas to become the world’s largest wind farm manufacturer by market share, operating in the mature North American and European markets and fast-growing markets such as India, Mexico and Brazil.