Mergers and acquisition are not a recent phenomenon in the wind business. My former manager Luis Miguel still remember vividly the merger in ’97 between Nordtank Energy Group (NEG) and Moerup Industrial Windmill Construction Company (Micon) – and the subsequent merger between NEG Micon and Vestas in 2004.
While in ’97 I was still enjoying the Golden Age of University, I had myself the pleasure of experiencing first-hand the merger between Nordex and Acciona Windpower 2 years ago. The same year Siemens merged with Gamesa, creating a new giant in the business. And that was not all, because GE’s completed the acquisition of Alstom.
Well, if you want my two cents on the topic the trend is going to continue in the next years. Wind turbine prices are free falling, and quite a lot of MW are awarded with an auction system were the cheaper takes all.
Every wind turbine manufacturer is working hard to lower the cost of energy, and for sure economies of scales help in the effort. I would say that Senvion is a good candidate for the next M&A: owned by the private-equity firms Centerbridge and Rapid Partners could be a good target for a Chinese manufacturer, for instance.
The acquisition can also be “vertical” in the value chain – turbine manufacturers are purchasing companies producing blades, blade moulds (Nordex with SSP Technology), or even providing Service (Vestas with the Operation and Maintenance company UpWind Solutions).
I see a consensus in the industry that this consolidation process will continue during the next years, somehow similar to the automotive industry.