TPG Acquires Siemens Gamesa's India and Sri Lanka Wind Turbine Businesses
TPG Acquires Siemens Gamesa's India Wind Business
TPG, a global investment firm, will acquire a majority stake. This involves Siemens Gamesa's wind turbine units in India and Sri Lanka. Siemens Gamesa is Siemens Energy's wind power division. The deal awaits standard closing conditions and regulatory approval. Financial details of this investment are currently undisclosed.
Strategic Move for Market Focus
Siemens Energy aimed to sell the India unit. This strategy intends to reduce losses. They plan to restore global wind business profitability by 2026. TPG Rise Climate will invest in these businesses. Their Global South Initiative, with Alterra, supports climate solutions.
New Company Formation and Leadership
Consequently, a new independent company will emerge. Siemens Gamesa will retain a minority stake. They will transfer roughly 1,000 employees. Their Indian manufacturing infrastructure will also move. Moreover, Siemens Gamesa will exclusively license its technology. They will develop products for the new entity.
India's Promising Wind Energy Sector
Vinod Philip of Siemens Energy sees India's strong potential. He believes the new company will better serve the Indian market. This offers long-term prospects for employees and customers. Siemens Gamesa can then focus on other key markets.
Experienced Leadership to Guide Growth
Vellayan Subbiah will chair the new company's board. Prashant Jain will serve as executive vice chairman. Philip will represent Siemens Gamesa on the board. MAVCO Investments and Jain will also hold minority stakes.
Driving Clean Energy in India
Ankur Thadani from TPG highlights onshore wind's increasing role. He believes this new platform will accelerate clean power delivery. Siemens Gamesa's technology and TPG's backing are crucial. MAVCO's investment also provides support.
Advisory Roles in the Transaction
Morgan Stanley and Kearney advised TPG, MAVCO, and Jain. Deloitte, Alvarez & Marsal, Khaitan & Co., and Cyril Amarchand Mangaldas also provided counsel. Cleary Gottlieb Steen & Hamilton offered legal advice.