The European Commission has cleared unconditionally under the EU Merger Regulation the proposed acquisition of wind turbine manufacturer Gamesa by Siemens.
EC found that the transaction raises no competition concerns, because a number of credible competitors would remain in the market.
The commission has investigated the impact of the proposed transaction on the onshore and offshore wind turbine markets, where the activities of Siemens and Gamesa overlap.
EC found that offshore wind turbine market is more concentrated with Siemens and MHI Vestas being the main competitors. Gamesa is also active in the market through its subsidiary Adwen.
However, as the investigation confirmed that Adwen is not a competitive constraint on Siemens, it is unlikely that the transaction will appreciably change the competitive situation, EC said.
The commission therefore concluded that the proposed transaction would raise no competition concerns.
In February 2017, the US Department of Justice gave the green light to the merger, thus making the European Commission’s decision the last approval to be obtained from the anti-trust authorities.
Subject to pending closing actions, Siemens and Gamesa expect to close the merger early April, after the registration of the merged entity in the Vizcaya Companies Register.
Siemens and Gamesa expect significant synergy potentials in a combined setup. The merger is set to create the world’s largest wind turbine manufacturer, as the enlarged firm will have an installed worldwide capacity of close to 70GW, an orderbook valued at EUR 21 billion, revenue of around EUR 10 billion, adjusted EBIT of EUR 915 million, and roughly 22,000 employees globally.