Siemens Gamesa Begins Negotiations for Senvion’s European Assets

Siemens Gamesa has won the exclusive rights to negotiate the acquisition of selected services and onshore assets in Europe from Senvion.

Siemens Gamesa Renewable Energy has announced that it has won the exclusive rights to negotiate the acquisition of selected services and onshore assets in Europe from debt-laden German wind turbine maker Senvion SE.

Senvion has said that it has signed a non-binding exclusivity agreement with Siemens Gamesa for the proposed transaction. In the event that final agreements are reached, Senvion expects the necessary decisions to be taken by the end of the month. The agreement in question has been approved by the company’s creditors’ committee.

In August, we had reported that Senvion, after receiving several advanced offers for various substantial core parts of its business, the company was entering final stages of the Merger and Acquisition (M&A) process. And that it will present the investor concepts to the creditors’ assembly for a vote on September 10, 2019.

Siemens Gamesa said that it is working on the deal for the potential acquisition from Senvion of selected services and onshore assets in Europe, free of financial debt. If negotiations succeed and final agreement is reached, a binding decision would be taken within the next weeks. An eventual transaction would have no financial impact on fiscal year 2019 accounts.

We are close to finding a safe harbour for a significant part of the business and substantial parts of its employee base said Senvion Chief Executive Yves Rannou, adding that management was also working on a solution for the remainder of the business.

“For the past few months, we have been committed to finding the best possible outcome for the company in this difficult situation. We are now close to having a solution for significant core parts of the business. What is more, is that we can keep the business running until the M&A process is concluded. This is possible thanks to the hard work and dedication of everyone at Senvion. I want to thank our employees for their continued trust and support,” he said.

In July, it was announced that the firm had successfully completed the installation of 546 MW of new wind capacity in the first six months of 2019 and achieved 89 percent year on year growth compared to the 289 MW in the corresponding period in 2018. The growth was largely driven by installations in new markets, namely Latin America and Australia.