Senvion Joining GE in Race to Buy Adwen?

Business & Finance

The Hamburg-based wind turbine maker Senvion is reportedly getting ready to throw in its bid for Adwen, a 50-50 offshore wind joint venture between Gamesa and Areva, Reuters cited people familiar with the matter as saying. 

Image source: Adwen

Senvion would thus compete against General Electric (GE), who reportedly entered into talks with Siemens, Gamesa and Areva to buy Adwen back in June.

Areva waived contractual restrictions in the offshore wind joint venture to clear the path for the merger between Gamesa and Siemens.

Gamesa and Areva also signed an amendment to the shareholder’s agreement for Adwen, by which Areva has three months to either sell its share to Gamesa/Siemens, or sell 100% of Adwen’s shares to a third-party investor which may submit a more attractive binding offer during this period. The sale of the entire capital is made possible by Areva’s drag-along right on Gamesa’s stake.

At the end of this 3-month period, Areva said it will disclose the option selected for the divestiture of its shares in Adwen. The commitments made by Adwen as part of the tender process for the offshore wind farms for electricity production in France will remain borne by Adwen, Areva said.

Gamesa and Areva received commitments from the French government that Adwen’s 8MW wind turbines will be used for projects offshore France totaling 1.5GW on condition that the turbines are built in France.

Gamesa and Areva formed the joint venture in March 2015, with both companies investing around EUR 200 million, offering two 5MW turbine types (AD 5-135 and AD 5-132) and a 8MW (AD 8-180) turbine to the market.

The company was the second largest wind turbine manufacturer in Europe in 2015, with a market share of 18.2% of grid connected capacity, according to the statistics published by EWEA (now WindEurope).