BERLIN (dpa-AFX) - Siemens AG (SIEGY.PK, SMAWF) and Gamesa Corporacion Tecnologica SA are close to announcing a deal to combine their wind-power activities, the Wall Street Journal reported citing people familiar with the matter.
A deal, which could be announced as early as this week according to the report, would end months of uncertainty around the transaction. However, a deal announcement could be delayed, the report said.
Siemens and Gamesa in February agreed in principle to combine their wind activities, but the tie-up hit a snag because Gamesa needed to renegotiate elements of an offshore wind joint venture, dubbed Adwen, with French nuclear engineering firm Areva SA. Those issues have been resolved in principle, the Journal said.
Siemens and Gamesa would likely seek a potential buyer for Adwen as part of that agreement, the report said, adding that Adwen would be integrated into the combined wind activities of Siemens and Gamesa if no buyer is found.
The Siemens-Gamesa deal structure, to be revealed as early as Wednesday, foresees Siemens transferring its offshore wind activities to the Spanish company in exchange for a roughly 60% stake in a future enlarged business, paper said.
Areva (ARVCF.PK) on Wednesday separately announced plans to split the state controlled nuclear-engineering group in three as part of a restructuring plan.
Areva confirmed its plan to restructure the group and to create a separate entity refocused on the nuclear fuel cycle, currently named 'NEW CO'.
AREVA and NEW CO will each benefit from a capital increase in the combined amount of 5 billion euros and will have resources suited to their mission and their strategy.
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