By Giulia Petroni
Siemens AG said late Tuesday that it would acquire Iberdrola SA’s stake in Siemens Gamesa Renewable Energy SA /zigman2/quotes/205820667/delayed ES:SGRE +3.54% for 1.1 billion euros ($1.22 billion).
The German engineering conglomerate /zigman2/quotes/200873563/delayed DE:SIE -5.75% said the supervisory board approved the purchase of the Spanish utility’s /zigman2/quotes/202060935/delayed ES:IBE -3.11% 8.1% stake at a price of EUR20 a share.
Siemens said it would transfer the shares to its future Siemens Energy unit, combining it with its gas and power business, which is to be spun-off and listed.
Following the acquisition, Siemens Energy will hold around 67% of the voting rights at Siemens Gamesa--a two-thirds majority at the company’s annual general meeting. No mandatory takeover offer to Siemens Gamesa’s external shareholders is planned, Siemens said.
“Siemens Gamesa Renewable Energy is a vital cornerstone in the new Siemens Energy portfolio in order to shape the necessary energy transition from conventional to renewable energy,” Siemens’s Chief Executive Joe Kaeser said.
The company said all legal disputes with Iberdrola would be settled and that it signed a cooperation agreement with both Iberdrola and Siemens Gamesa for wind-power generation projects and grid support.