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Siemens willing to buy Areva JV in Gamesa deal - paper

Published 22/03/2016, 09:49
© Reuters. Siemens' new company logo is seen before a news conference in Munich
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MUNICH/PARIS (Reuters) - German industrial group Siemens (DE:SIEGn) is prepared to buy Spanish-French wind power joint venture Adwen as part of the planned merger of its wind assets with those of Spain's Gamesa (MC:GAM), Germany's Sueddeutsche Zeitung reported on Tuesday.

Citing sources close to the negotiations, the newspaper said Siemens Chief Executive Joe Kaeser was now ready to buy French state-owned energy firm Areva's (PA:AREVA) stake in the venture as part of the cost of doing the deal.

Siemens declined to comment on the report.

Siemens and Gamesa plan to combine their wind assets to form the world's biggest wind farm manufacturer with approximately 10 billion euros (8 billion pounds) in annual sales, overtaking current market leader Vestas (CO:VWS) of Denmark.

But the deal has stumbled over the Adwen venture.

Two sources told Reuters last week that Siemens did not want to fulfill certain elements of contracts won by Adwen, which included an obligation to develop and build a jumbo offshore turbine in France.

Siemens' Chairman Gerhard Cromme is due to meet French Economy Minister Emmanuel Macron in Paris on Tuesday morning, according to Macron's agenda.

© Reuters. Siemens' new company logo is seen before a news conference in Munich

($1 = 0.8925 euros)

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