Siemens Gamesa agrees to buy selected Senvion assets for €200m

Spanish renewable energy company Siemens Gamesa Renewable Energy (SGRE) has agreed to buy selected European assets from bankrupt German energy company Senvion for €200m.

This follows on from a non-binding exclusivity agreement signed by the two companies in September 2019 for SGRE to acquire Senvion’s assets.

As part of the agreement, SGRE will obtain Senvion’s European onshore service, its intellectual property, its onshore blade manufacturing facility in Vagos, Portugal, and 2,000 Senvion employees will transfer to SGRE.

SGRE notes that, along with these assets, Senvion’s fleet of 8.9GW in installed wind power will take its capacity to nearly 69GW. SGRE also expects the acquisition to take place in the first half of 2020, so it will have no impact on its 2019 financial performance.

Following the announcement SGRE’s share price fell slightly by 0.28% from €12.33 to €12.30, giving the company a market capitalisation value of €8.35bn. This is down from when the two companies originally signed the non-bonding exclusivity agreement when SGRE’s shares were €13.72 a share and it had a market capitalisation value of €9.3bn.

Siemens Gamesa Renewable Energy share price in 2019

Due to the company’s impending bankruptcy, Senvion’s share price has continued to fall and is currently down to 0.70¢ a share with a market value of just over €5m.

Senvion share price in 2019