iemens-Gamesa merger risk to 6 bln euro French offshore wind deal - RTRS
18-MAR-2016 13:15:33
PARIS, March 18 (Reuters) - The planned takeover of Spanish wind power group Gamesa GAM.MC by Siemens SIEGn.DE will not include Gamesa partner Areva's AREVA.PA offshore wind turbine technology nor its plans to build a turbine factory in France, two sources familiar with the situation told Reuters.
Gamesa and Siemens said in January they were in talks over a merger that would create the world's biggest wind power firm, but the plan has stalled over what to do with the French commitments of Gamesa-Areva joint venture Adwen. (Full Story)
Adwen is part of two consortiums, one for 1000 megawatt with Engie ENGIE.PA and one for 500 MW with Spain's Iberdrola IBE.MC - to build offshore wind parks on the French coast.
The French government had awarded these contracts to Areva at above-market prices on the condition that Areva would develop its own 8 MW jumbo wind turbine and build it in France, with the aim of starting an offshore wind industry in France.
"Siemens has no need for Areva's technology, it is developing its own big turbines," one source said. The other source said that Siemens, undisputed EU market leader in offshore, cannot build a French factory for just two contracts.
As the French contracts had been conditional on manufacturing in France, the government could cancel the two tenders, which have a combined value of nearly 6 billion euros, one source said.
Siemens CEO Joe Kaeser, who met with French Industry Minister Emmanuel Macron on Monday in Paris, declined to comment on the Gamesa deal on a conference call on Friday.
Areva and Engie also declined to comment.