Siemens Energy offers to buy Siemens Gamesa in $4.29B deal

Siemens Energy offers to buy Siemens Gamesa in $4.29B deal (OTCMKTS:GCTAY)

May 23, 2022 by Seeking Alpha

Key Facts

  • ljubaphoto/E+ via Getty Images Siemens Gamesa Renewable Energy (OTCPK:GCTAY) surges in European markets Monday after Siemens Energy (OTCPK:SMEGF) said it made an offer to buy all outstanding shares it does not already own for €4.06B ($4.29B), or €18.05/share.
  • Siemens Energy (OTCPK:SMEGF), which already holds 67% of Siemens Gamesa (OTCPK:GCTAY), said it will integrate the wind turbine maker, leading to cost synergies of ~€300M/year within three years, and to mid-triple-digit million euros in revenue synergies by the end of the decade.
  • CEO Christian Bruch said Siemens Energy (OTCPK:SMEGF) must move as quickly as possible to integrate the companies, as there are "not yet clear signs of a recovery" at Siemens Gamesa (OTCPK:GCTAY) and "multiple years" are needed to fix the problems it faces.
  • Siemens Gamesa (OTCPK:GCTAY) has reported losses and lower than expected new orders, but "management seems to have understood how to solve some key issues," SimOne Trading writes in a bullish analysis published on Seeking Alpha.

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