Siemens Energy Told to Buy Rest of Troubled Sub

Germany's Union Investment demands that Siemens Energy buy the 33% of its Spanish turbines unit it doesn't already own after Gamesa reports a $350 million Q1 loss.

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German fund management group Union Investment Institutional GmbH on Monday, Feb. 14, called on Siemens Energy AG to take full control of separately listed Siemens Gamesa Renewable Energy SA after a series of profit warnings from the Spanish onshore wind turbine builder.

Union Investment said that by acquiring the 33% of Siemens Gamesa it does not already own, Siemens Energy would both take more effective control of its struggling onshore wind business and increase the share of renewable energy in its overall business.

The call comes after Siemens Gamesa in January announced a €309 million ($350 million) first-quarter loss, which dragged down both its own share price and that of Siemens Energy.

The loss was blamed on supply chain problems and difficulties with the ramp-up of its new onshore wind turbine platform. Union Investment, however, said it sees the problems at Siemens Gamesa as structural and called for the matter to be taken in hand.

Siemens Energy said it will put Jochen Eickholt in charge of the Zamudio, Spain, turbines unit from March as its third CEO in 18 months. Eickholt took on the vice chairmanship of the Siemens Gamesa supervisory board at the start of 2022, according to Boardex, a relationship management sister company of The Deal.

He has been on the management board of Siemens Energy since 2020, where he has been responsible for power generation and industrial applications businesses as well as Asia-Pacific and China.

Union Investment owns 1.19% of Siemens Energy, making it one of the group’s top five shareholders. Its statement comes ahead of Siemens Energy’s annual general meeting of shareholders scheduled for Feb. 24, where it will push other shareholders to step up pressure on the company to look at full integration of Siemens Gamesa.

This article originally was posted on The Deal on February 15, 2022 by Jonathan Braude. View the original article here.

Follow Jonathan Braude on Twitter and LinkedIn.

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