BIG CHINA WIND MAY BUY WORLD’S BIGGEST WIND

Ming Yang rumoured to acquire Vestas in €2 billion deal

Wu Oi, 9 July 2012 (Windpower Monthly)

“Ming Yang is seeking to take over Vestas at a price of €1.5 billion to €2 billion, according to reports in the Chinese business press [denied by Ming Yang]…Citing anonymous industrial regulatory sources, Caixin.com said the takeover will be completed in September or October, if everything goes smoothly…Vestas did not confirm or deny the report and dismissed it…

“…Vestas was the world's largest manufacturer in 2011, with 12.9% market share. Ming Yang, based in Zhongshan, south China’s Guangdong province, was the 10th largest, with 2.9% market share…Ming Yang currently uses wind turbine designs produced by German designer Aerodyn.”

click to enlarge

“…[Recent reports say] Vestas is considering putting itself on the market and is in debt restructuring talks…The UK's Sunday Times said Vestas' banks including HSBC and Royal Bank of Scotland, had told the company it needs to prepare a debt restructuring plan…[and] said the banks had appointed Ernst & Young to handle talks with Vestas, which has itself brought in PWC to handle the restructure. The report said Vestas' debts are around €2 billion.

“Like fellow Chinese turbine manufacturers [like Goldwind and Sinovel], Ming Yang has had a difficult 2011 [with declining profits]. The company's profits for the year fell from CNY 709 million in 2010 to CNY 292 million, a 53% fall in profit [which it attributed to] falling turbine prices in the Chinese market.”

Tweet