A plan to merge the wind power ventures of Spain-based Gamesa and Germany-based Siemens has stalled over questions regarding an existing joint venture, reports Reuters.
Gamesa and France’s state-owned Areva Group formed the Adwen 50-50 joint venture “dedicated to the design, manufacturing, installation, commissioning and services of offshore wind turbines,” according to Adwen’s website. The joint venture was announced in early 2015 with a 2.8 GW project pipeline and the objective of gaining 20% market share in Europe.
Gamesa and Siemens began merger talks in January, and the deal was reportedly nearing completion just a few weeks ago. Before the merger can go through, however, Areva must decide what to do with its shares in Adwen.
Areva could share its 50% stake in Adwen to the combined Gamesa-Siemens wind company, or it could buy out Gamesa in order to give France its own offshore wind company.
Sources close to the deal tell Reuters that Areva is the only thing standing in the way of the Gamesa-Siemens merger. Everything else is a “done deal,” including an agreement with regulators on not having to make a full takeover bid.
Should the merger go through, the new Gamesa-Siemens wind unit would surpass Vestas as the largest wind turbine manufacturer by market share.