Siemens AG will pay about US$1 billion to Spain’s Gamesa in a deal to merge of the companies’ wind energy businesses, Bloomberg reported, citing sources.
Gamesa will receive cash as a special dividend from the new wind venture along with 41 percent stake in the business as a part of the deal, Bloomberg said.
Siemens declined to comment, and Gamesa could not be immediately reached outside regular business hours. On Wednesday, Gamesa said it had not reached a deal with Siemens on the planned merger and that negotiations remained open.
The two companies said in January they were discussing a possible deal that would create the world’s biggest wind power business and bolster the German engineer’s weak position in the onshore market.