Vestas Wind Systems A/S, the world’s biggest wind turbine manufacturer, will buy out its offshore joint venture partner in an all-share deal that looks to take advantage of an expanding industry at the heart of the energy transition.
The 709 million-euro ($832 million) deal for Mitsubishi Heavy Industries, Ltd.’s 50% share in the partnership will integrate the offshore business into Vestas’s much bigger onshore wind operation. It’s a move that the Denmark-based manufacturer hopes will help it dominate the industry by 2025.
“Vestas is the leader in onshore wind, but to accelerate the energy transition and achieve our vision we must play a larger role in offshore,” said Henrik Andersen, Vestas’s chief executive officer.
The offshore wind market has become increasingly competitive as governments look to transition away from fossil fuels by, in part, installing massive turbines at sea.
The dominant Siemens Gamesa Renewable Energy SA is already fighting for market share from General Electric Co. Over the last five years, MHI Vestas Offshore Wind A/S has had about 28% of the offshore wind turbine market, compared to 54% for Siemens Gamesa.
The merger of the offshore business into Vestas will help the company to optimize its current manufacturing footprint, Andersen said.
Shares in Vestas rose 2.8% by 9:56 a.m. in Copenhagen.
MHI Vestas’s current co-chief executive officer Philippe Kavafyan will leave the business after two-and-a-half years in the role, the company said.
Vestas and MHI will also establish a joint venture in Japan to sell wind turbines.
(An earlier version of this story corrected the currency conversion in the headline and second paragraph.)
(Updates with offshore wind growth chart)
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