Key Takeaways
- A consortium led by TPG and Mavco Investments seeks approval to acquire Siemens Gamesa’s onshore wind business.
- The acquisition includes manufacturing and technical services related to onshore wind turbine generators.
- The parties maintain that the deal will not adversely affect competition in the market.
Consortium’s Acquisition of Siemens Gamesa’s Wind Business
A consortium comprising TPG, Mavco Investments, and former JSW Energy CEO Prashant Jain has applied for regulatory approval from the Competition Commission of India (CCI) to acquire Siemens Gamesa Renewable Power’s onshore wind business. This acquisition involves TPG’s affiliates, Peony Properties Pvt Ltd and TPG REGen SG Pte, alongside Mavco Investments, which is controlled by selected members of the Murugappa family.
As outlined in a notice filed with the CCI on May 15, the acquisition pertains specifically to the manufacturing and assembly of onshore wind turbine generators, as well as providing operation, maintenance, and technical services for wind turbines and associated projects. Siemens Gamesa Renewable Energy (SGRE) operates as a wholly-owned indirect subsidiary of Siemens Energy Group’s ultimate controlling entity, SEAG.
Additionally, Prashant Jain’s Tikri Investments is set to acquire a minority stake in the venture. The parties involved assert that this proposed combination will not disrupt competitive dynamics in the Indian market. In their filing, they indicated that any relevant market distinctions should remain open, citing only minimal vertical overlaps between Mavco’s affiliates and the target business concerning products such as gearboxes, generators, switchgears, and transformers used in wind turbines.
In March 2023, TPG and Siemens Gamesa announced they had reached an agreement for TPG to secure a majority stake in Siemens Gamesa’s onshore wind turbine generator manufacturing operations in India and Sri Lanka. Mavco Investments is also poised to make a significant minority investment, while Siemens Gamesa will continue its participation in the initiative. Additionally, Jain is expected to take on a minority role as a Climate Change Partner within the project.
The acquisition reflects a growing trend of investment in renewable energy sectors, especially in developing markets, where demand for sustainable solutions is increasing. Stakeholders believe the collaboration will enhance technological capabilities and operational efficiency within the wind energy sector.
Overall, this acquisition marks a significant strategic move within the renewable energy landscape, illustrating the commitment to expanding wind power projects amidst growing environmental concerns.
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