If the deal were to go through, it would create the world’s biggest power producer from wind energy.
Bloomberg has reported citing sources familiar with the matter at hand, Siemens AG is likely to pay $1 billion to Gamesa, a Spanish company in the wind business, in a deal which will see the merger of the wind energy business of both companies.
As per the terms of the deal, as reported by Bloomberg, Gamesa is set to receive cash as a special dividend from the new wind venture. Along with this, it will also receive a 41% stake in the business.
Gamesa could not be immediately reached outside regular business hours while Siemens declined comment. Earlier this week on Wednesday, Gamesa had stated that it had yet to reach a deal with Siemens on the planned merger and that negotiations were still on.
Earlier this year in January, both companies had stated that they were in the early stages of discussing a possible deal which would create the world’s largest producer of power from wind energy.
The deal will bolster Siemen’s position in the onshore market.