Siemens Gamesa will become the world’s second-largest wind turbine manufacturer after the European Union approved the merger between the two engineering and production giants.
Windpower Monthly reports the company will hold 13% of the world market for wind turbines, second only to Aarhus, Denmark-based Vestas, based on 2016 data from FTI Consulting.
“The Commission found that the transaction raises no competition concerns because a number of credible competitors would remain in the market,” the European Commission stated.
“The onshore wind turbine market is rather fragmented with several large competitors, even after the merger,” the EC’s competition agency added.
“The deal, which combines the German company’s strength in offshore wind power and Gamesa’s strong presence in emerging markets, comes amid a wave of consolidation in the wind industry as companies try to cut costs and stay competitive,” Reuters reports. Analysts say the new company begins life with market capitalization of about €10 billion (US$10.7 billion).
U.S. regulators approved the deal in February.