SSE nears deal to buy Siemens Gamesa wind farm unit – sources

By Andres Gonzalez and Isla Binnie

MADRID Reuters – British renewable power generator and network operator SSE is in advanced talks to buy Siemens Gamesas wind farm development unit, three sources close to the matter told Reuters.

Bidders were originally looking at valuations of around 300 million euros 323.58 million but the price tag grew during the process, the sources said, without specifying the current level.

If the deal goes ahead, it would be the latest acquisition of lowcarbon generation by a large power producer as companies and countries try to phase out planetwarming fossil fuels.

The quest has become more urgent in Europe since major energy supplier Russia invaded its neighbour Ukraine on Feb. 24.

A deal is expected to be announced later this week, but the sources, who requested anonymity as the matter is confidential, said there was a chance no agreement would be reached.

The wind farm projects on sale will have the capacity to generate more than 3 gigawatts GW of electricity in France, Greece, Italy and Spain and a team of up to 50 staff, one of the sources said.

Bank of America is advising Siemens Gamesa in the process.

Siemens Gamesa and Bank of America declined to comment. SSE did not reply to a request for comments.

SSE sold its household supply and services arm two years ago, and has pledged to invest 12.5 billion pounds in clean energy projects to 2026.

In March, it raised cash by selling its 33.3 stake in gas distribution operator Scotia Gas Networks Ltd SGN for nearly 1.29 billion pounds 1.70 billion.

SSE has fended off calls from activist investor Elliott to spin off its renewables business.

Siemens Gamesa, formed by the 2017 merger of Spains Gamesa with the wind division of Germanys Siemens, is looking to raise cash and protect its core turbine manufacturing business from the margineroding effects of soaring materials and logistics costs.

One gigawatt of power is equivalent roughly to the average production of a nuclear power plant.