Vestas CEO Rules Out Bidding Against Siemens for Gamesa

Vestas Wind Systems A/S Chief Executive Officer Anders Runevad ruled out bidding for Spanish competitor Gamesa Corp. Tecnologica SA, saying he’s focused on “organic growth” in the wind turbine market.

Gamesa, based in Zamudio, said last month that it’s holding talks with Siemens AG on a potential combination of some wind businesses of Siemens through a merger. The Spanish manufacturer’s shares dropped in Madrid on Tuesday after Runevad made his comments.

Anders Runevad
Anders Runevad
Photographer: Simon Dawson/Bloomberg

“I have no intention of putting a bid on Gamesa,” Runevad said Tuesday in a telephone interview after Vestas announced record sales and profit in 2015 and predicted it’ll top that performance this year. “Our strategy is about organic growth, and I’m confident in our position.”

A purchase of Gamesa by Siemens would push the combined entity beyond Vestas and General Electric Co., which are the two biggest wind turbine makers by market share. The industry is booming, with growth forecasts buoyed by declining costs and a new global deal to fight climate change by limiting fossil fuel emissions.

Runevad declined further comment on the potential Gamesa-Siemens linkup.

“There are a lot of rumors in the market, but the reality is I don’t know if it will happen,” Runevad said.

Gamesa shares fell by as much as 2.7 percent after Runevad made his comment, paring away an earlier gain of as much as 3.4 percent from Monday’s closing price.

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