Siemens has confirmed that it has reached an agreement with the German Government and a group of financial entities thanks to which its parent company will receive 15,000 million euros to face the losses derived from its renewable energy subsidiary Siemens Energy, (in which the Spanish Gamesa).
The German Ministry of Economy explained this Tuesday that a consortium of private banks will provide Siemens Energy with 12 billion euros in loan guarantees which, in turn, will be backed by 7.5 billion euros.
The other 3 billion euros will come from other shareholders, including Siemens, which will buy part of Siemens Energy’s stake in a listed Indian subsidiary for about 2 billion euros, according to people familiar with the matter. cited by the Bloomberg agency.
With this agreement, Siemens Energy obtains the necessary financial support to be able to compete for new large-scale contracts in transmission networks and gas turbines and compensates for the losses derived from the Gamesa wind unit.
The Frankfurt stock exchange has validated the agreement with a rise of 2.2%, after hearing the news. The value plummeted more than 35% on October 26 and has accumulated a drop of 42% since the beginning of the year.
Talks with the government began after Siemens Energy’s credit rating was downgraded this summer and Siemens, the manufacturer’s former parent, indicated it was no longer willing to help.
In the last week, German Chancellor Olaf Scholz has increased pressure on Siemens to reach a deal, stating that the Government sees Siemens Energy as critical to the country’s transition to renewable energy.
“We have to find a solution and I would say we have found it. We will make it public shortly,” Habeck said at a press conference in Berlin, according to Bloomberg.
The announcement comes on the eve of the presentation of Siemens Energy’s 2023 results, which closes its fiscal year on September 30. This Wednesday and early in the morning, analysts expect the communication of historic losses, which could exceed 4.5 billion euros due to the burden of the wind turbine manufacturer. Christian Bruch, president and CEO of SE, will later explain these numbers and possible shock measures at a press conference in Munich to try to right SG’s course.
