Advertisement
Canada markets close in 5 hours 50 minutes
  • S&P/TSX

    22,158.24
    +51.16 (+0.23%)
     
  • S&P 500

    5,251.08
    +2.59 (+0.05%)
     
  • DOW

    39,755.11
    -4.97 (-0.01%)
     
  • CAD/USD

    0.7378
    +0.0006 (+0.08%)
     
  • CRUDE OIL

    82.32
    +0.97 (+1.19%)
     
  • Bitcoin CAD

    96,354.15
    +2,719.29 (+2.90%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,229.10
    +16.40 (+0.74%)
     
  • RUSSELL 2000

    2,119.36
    +5.01 (+0.24%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ

    16,393.49
    -6.03 (-0.04%)
     
  • VOLATILITY

    13.04
    +0.26 (+2.03%)
     
  • FTSE

    7,960.79
    +28.81 (+0.36%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6824
    +0.0019 (+0.28%)
     

Gamesa, Siemens reject GE's offer for Adwen JV - sources

Siemens AG logo is seen during official opening of the headquarters in Munich, Germany, June 24, 2016. REUTERS/Michaela Rehle/File Photo (Reuters)

By Andrés González and Alexander Hübner MADRID/FRANKFURT (Reuters) - Siemens and Gamesa have rejected a non-binding offer from General Electric for assets belonging to a wind power venture between Gamesa and Areva, sources close to the talks told Reuters on Tuesday. Spain's Gamesa is merging with Siemen's wind power division to create the world's biggest builder of wind farms in a 10 billion euro (8.4 billion pounds) deal, but the Adwen venture between Gamesa and Areva has been a sticking point. Germany's Siemens does not need the technology from Areva, which is majority owned by the French state, because it has developed its own offshore wind turbines. Siemens and Gamesa said when they agreed their merger in June that Areva had three months to decide whether it wanted to buy out Gamesa's 50-percent stake in the venture, or sell it to them. This opened the door for an offer from General Electric, which wants to become a major player in the offshore wind industry and has said it was in talks with the companies involved about buying Adwen if France consented. "General Electric has made an offer for (Adwen's) assets, which is impossible to accept," one source said. Representatives for Siemens, Areva and General Electric declined to comment. A spokeswoman for Gamesa said the sale process was on track and there was no final decision made about it. If Areva does not find a buyer before the mid-September deadline, the most likely outcome would be for Gamesa to exercise its purchase option and take over Areva's 50-percent stake, the source said. Gamesa values its current stake in Adwen at 60.6 million euros, and the option gives the same value to Areva's half. Another source said although the offer was not sufficient, General Electric could still improve it before the deadline. (Additional reporting by Georgina Prodhan in London and Bate Felix in Paris; editing by David Clarke)