Siemens will add its 59% stake in Siemens Gamesa Renewable Energy to the Gas and Power division spinoff which will be managed separately.
The new Gas and Power division ”is to be given complete independence and entrepreneurial freedom through a carveout and a subsequent public listing” , Siemens said.
Plans call for the stock exchange listing to take place by September 2020.
“This move will create a powerful pure play in the energy and electricity sector with a unique, integrated setup – an enterprise that encompasses the entire scope of the energy market like no other company,” said Joe Kaeser , President and CEO of Siemens AG.
“Combining our portfolio for conventional power generation with power supply from renewable energies will enable us to fully meet customer demand. It will also allow us to provide an optimized and, when necessary, combined range of offerings from a single source. We’re convinced that this strategic decision will be positive for all participants and enable long-term value creation for customers, employees and shareholders – as can also be seen in recent market successes such as those in Iraq, which we’ll jointly continue to pursue.”
Siemens will also give up its majority stake in Gas and Power. The company’s stake will initially be somewhat less than 50 percent and, for the foreseeable future, above the level of a blocking minority holding.
A decision regarding the spinoff and subsequent public listing is to be made at an extraordinary shareholders’ meeting, probably in June 2020. Siemens will then deconsolidate both the new Gas and Power division and Siemens Gamesa.
“Being independent will enable us to more effectively leverage our position of strength to further support our customers in rapidly changing energy markets,” said Lisa Davis , CEO of Siemens’ Gas and Power.
“Global electrification continues to be vital to economic and environmental progress around the world, and as the only company with a leading portfolio along the entire energy value chain – in both conventional and renewable energy – we are uniquely able to help both public- and private-sector customers benefit from these developments. We’ll now have more freedom and agility to be able to concentrate fully on the highly specific and quickly changing requirements of our markets and customers. In addition, we’ll be able to more directly control our costs and ensure that our stakeholders benefit directly from every euro we spend.”