Wednesday, October 21, 2020
Renewable Energy News

Siemens unleashes behemoth behind much of world’s electricity – The Australian Financial Review

By Staff , in Wind Power , at September 28, 2020

The listing is one of the last moves under chief executive officer Josef Kaeser to turn one of Europe’s largest industrial manufacturers into a more manageable entity. The 63-year-old’s spinoff of its medical business, Siemens Healthineers, was Germany’s biggest initial public offering of the past four years.

Siemens Energy will own a majority stake in separately listed wind-power company Siemens Gamesa Renewable Energy, and last year generated revenue of €28.8 billion with 91,000 employees.

Siemens handed 55 per cent of Siemens Energy shares to its shareholders, and the parent has said it will further reduce its stake within 12 to 18 months, which could reignite interest in consolidation, according to BI’s Imode.

Before deciding on a spinoff, Siemens mulled other options for the business. Bloomberg News reported last year that Mitsubishi Heavy Industries held talks with the company about a possible gas-turbine business combination, and that Siemens had discussions with other firms about a full or partial sale of its division.

Siemens still holds 79 per cent of Siemens Healthineers, which has been among the more successful recent listings in Germany. A plan to combine Siemens’ railway business with Alstom of France, however, was vetoed by the European Commission.

Mr Kaeser will leave the carrying out of one more spinoff to his successor, Roland Busch, who will take over most CEO responsibilities this week. In February, the company will present shareholders with its plan to offload its Flender unit which makes mechanical drives in what will be a company with about €2 billion in sales and 8500 employees.

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Bloomberg