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.

Click To Read Full Article

MONEY
PERSON
PERCENT
GROUP
MISCELLANEOUS

This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2021 Kwhen Inc.

Was this content valuable for you?