Acciona in Nordex takeover bid

Acciona will launch a 100% takeover of German manufacturer Nordex after increasing its majority share in the turbine maker to 36.27%.

Commenting, Shashi Barla, Wood Mackenzie Principal Analyst, said: "The leading three western wind turbine OEMs - Vestas, SGRE, GE - are dominating the global turbine market share. As such, it's imperative for pure-play companies such as Nordex to strengthen their global market position. With strong backing from current largest shareholder and one of the leading Independent Power Producers (IPPs), Acciona Energy, Nordex's commercial market share position will be solidified.

"The average size of wind power projects is increasing in most key global markets. In some auction markets, leading turbine OEMs are developing GW-scale wind projects. Nordex has recently bagged several turbine contracts for 400+MW projects in Brazil, Sweden and the US. Acciona Energy's balance sheet will help the company to win even larger contracts in the future.

"Economies of scale, operational efficiency, competitive product and turbine technology will pave the way for the future success of turbine OEMs. Large turbine supply contracts, if executed, will positively impact the near-term EBIT margins. OEMs were plagued with lower EBIT margins earlier this year due to the aggressive pricing of contracts signed in 2017. Trade tariffs in major markets such as the US have only exacerbated the situation.

"Additional equity from Acciona Energy will aid Nordex with investing in future growth. Nordex previously invested capital in product development by expanding its product portfolio with leading technology offerings, including the Delta4000 series models N149, N155 and N163. This reflects an increase in order intake from 2.7GW in 2017 to 4.7GW in 2018. The increased order intake is a trend we see continuing throughout 2019, as 3GW of orders were signed in H1 alone.

"For Nordex to continue this momentum and compete with larger peers, it is critical to have access to additional capital and financial strength. Acciona Energy's full ownership will aid Nordex in this respect."