The two wind turbine manufacturers, belonging to the world's top five wind power giants, in the second half of June signed an agreement for merging: Siemens and Gamesa, when merged, would create a leader in the industry.
The results of 2015 have shown that the leadership in the world ranking of wind turbine manufacturers is not achievable for either German or Spanish competitor. However, by combining last year's market shares of both companies: 7.7% of Siemens and Gamesa’s 5.5%, we get 13.2%, which is already more than has the leader – the Chinese company Goldwind (full name – “Xinjiang Goldwind Science & Technology Co”) with its share of 12.8%. And these simple arithmetic calculations were made without taking into account the likely synergy achievable by combining the efforts of professionals from the two previously competing teams.
Analyzing the reason for the merger of these particular giants, it should be noted that their cooperation benefits both companies.
Siemens is one of the world's largest offshore turbine suppliers, and Gamesa, on the other hand, specializes in onshore installations (and ranks 4th in the world in this sphere) and it also confidently operates in Latin America and India.
The merge is expected to close by the end of Q1 2017. The new company will have its headquarters in the homeland of Gamesa – in Spain, and the head of the company will be Ignacio Martin (Gamesa’s Chief Executive Officer).
According to the preliminary estimates of experts, the total revenue of the company would be 9-10 billion euros already in the first year of cooperation.
Commenting on the agreement, Ignacio Martin said, “We are facing incredibly exiting time, and I assure you that the deal will benefit all the participants involved: shareholders, employees, suppliers and customers.”
Currently, wind power is the fastest growing energy sector in the world.
The wind turbine market is expected to continue growing rapidly in the coming years (the average annual rate of growth in wind power is about 20%). And the newly created giant would be able to significantly surpass the forecast figures for the capitalization of its business.