GE given EU green light for the acquisition of LM Wind Power
General Electric's purchase of the Danish company LM Wind Power was unconditionally approved by the EU Commission on Monday. The deal brings in 1,5 billion EUR, about 11.2 billion kroner to the current owners of LM Wind Power, the European private equity fund Doughty Hanson.
"Given the market for wind turbines, GE will continue to face significant competition from other major wind turbine manufacturers, such as Siemens, Vestas, Nordex and Senvion which either produce their own wings and/or doesn't depend on LM Wind Power", says the Commission in its decision.
After an initial investigation, the Competition Authority concluded that the transaction would not reduce competition in Europe in neither market for the production of blades for wind turbines or the downstream market for offshore and onshore wind turbines.
"GE will not be able to exert greater influence in the market for wind turbine blades, especially since competing blade manufacturers will continue to have access to other wind turbine manufacturers," said the Commission.
LM Wind is one of the largest manufacturers of wind turbine blades in the world and in addition to GE supplies Goldwind in China and Gamesa in Spain, whose merger with Siemens was approved by Brussels a week ago.
LM Wind Power has produced the world's largest wind turbine blades for French Adwen with a length of 88,4 meters and a weight of 34 tons each. The wings are now being tested by the French wind turbine manufacturer.
Source: Financial Times / Maritime Denmark