The German industrial giant intends to integrate its wind energy generation unit 鈥 which produces generators and components for direct-drive turbines 鈥 into its聽mechanical drive systems subsidiary,聽Flender.
It would then spin off the new company in a public listing, it announced alongside its results for the second quarter of its financial year.
Siemens explained the planned merger would 鈥渃omplete the company's electrical and mechanical portfolio, making it an important tier-one supplier to the wind power industry".
It expects Flender to have pro-forma annual revenue of about 鈧2 million following the deal.
Horst Kayser, chairman of Siemens鈥 portfolio companies, said the merger would create a 鈥渙ne-stop-shop鈥 for Siemens鈥 wind power customers.
The company鈥檚 shareholders will vote on the proposal at the next ordinary annual shareholders meeting in February 2021.
Siemens acquired Flender in 2005. It聽produces mechanical drive systems for wind turbines and other power generation sectors, including mining, and oil and gas. It also supplies gearboxes under the Winergy brand.
Energy spin-off
Siemens is also proceeding with its plan to transfer its 67.1% majority stake in wind turbine OEM Siemens Gamesa Renewable Energy (SGRE) to its gas and power unit, untether the new "Siemens Energy" unit, and spin it off in a public listing.
The German conglomerate will present the spin-off to analysts and investors at a Capital Market Day on 1 September聽2020, subject to a decision made by shareholders on 9 July.
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