• Iberdrola holds 19.7 percent of Gamesa and has board seats
  • Combination would broaden reach of both wind turbine makers

Gamesa Corp. Tecnologica SA shares surged the most in two and a half years following a report that Siemens AG is studying a bid for the Spanish maker of wind turbines.

Gamesa surged as much as 16.5 percent to 16.78 euros at 10:32 a.m. in Madrid trading, the biggest jump since July 2013, according to Bloomberg data. That gives Zamudio, Spain-based Gamesa a market value of 4.6 billion euros ($5 billion). Siemens rose almost 1 percent to 87.32 euros in Frankfurt.

Siemens has hired Deutsche Bank AG to explore a purchase of Gamesa and has discussed options with Iberdrola SA, the Spanish utility that owns a 19.7 percent stake of the turbine-maker, news website El Confidencial reported Friday. Gamesa and Siemens are the eighth- and joint second-biggest wind turbine makers by annual market share respectively, according to Bloomberg New Energy Finance.

Siemens declined to comment. Gamesa said in a regulatory filing that it “regularly analyzes the different strategic options that are presented to the group” and that it’s made no decisions.

The two would have a combined installed wind capacity of 60 gigawatts, compared to 68 gigawatts for Vestas Wind Systems A/S, the industry’s largest manufacturer, based on 2014 data compiled by Bloomberg Intelligence.

Siemens leads in making machines designed for use offshore, while Gamesa specializes in onshore wind. They’d have about 15 percent of the global wind market together, bigger than Vestas’s 10 percent, and General Electric Co.’s 11 percent, according to BNEF.

The Spanish and German companies also complement each other in the markets they serve. Gamesa is strong in South America and India as well as being the biggest foreign supplier in China.

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