Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Siemens Energy CEO says it bought wind unit based on 'sound' intel

Published 26/02/2024, 12:49
© Reuters. FILE PHOTO: Siemens Energy CEO Christian Bruch addresses the annual results news conference in Munich, Germany, November 15, 2023. REUTERS/Leo Simon/File Photo

FRANKFURT/DUESSELDORF (Reuters) -Siemens Energy carried out far-reaching due diligence measures prior to its full takeover of wind turbine unit Siemens Gamesa, its CEO said, rebuffing shareholder criticism that major quality issues that subsequently emerged had been overlooked.

Siemens Energy's leadership decided to go ahead with a 4 billion euro ($4.34 billion) bid - which later backfired over faulty components - based on a "sound information basis", Christian Bruch told shareholders at the group's annual general meeting.

Earlier, shareholders had sharply criticised the company's leadership for the botched deal, which has thrown the group into its biggest crisis to date and essentially forced it to ask for billions of euros in state-backed guarantees to do its business.

Bruch said the quality issues at Siemens Gamesa's onshore business, which emerged in June 2023, surfaced on the basis of empirical usage data of newer turbines that had not been available at the time of the takeover a year earlier.

The crisis and its consequences have raised questions over whether onshore wind should still be part of the company, given the business has caused billions of euros of losses over the past years.

Bruch said wind was a core part of the company and that there were currently no talks to sell it, but added that unless the business did not earn the required returns over the medium-term "we're not the best owners".

($1 = 0.9215 euros)

Latest comments

its a no action decission from a paralysed management about a bottomless loss strategy
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.