Iberdrola Renovables and Gamesa Energía are ready to launch the strategic agreement signed in June 2008 for the joint development of their wind farm promotion, development and operation businesses in certain European countries (Spain, France, Greece, Cyprus, Poland, Portugal, Italy, Germany, Bulgaria, Rumania, Sweden, Hungary, Estonia, Russia and the UK), having simplified certain technical aspects of the original agreement.
According to an Iberdrola Renovables press release, under the terms of this agreement, which will maximise the value of both companies’ pipelines, Iberdrola Renovables and Gamesa Energía will manage their respective wind power development businesses in the countries falling under the scope of the agreement on an independent basis, under the watch of an Advisory Committee, until 30 June 2011.
There will be cross options on Gamesa Energía’s wind power developments in the European countries forming part of the agreement, to be exercised from 1 July 2011 provided certain conditions are met. Iberdrola Renovables may acquire these businesses in cash or, alternatively, may opt to set up a joint venture (75%-owned by Iberdrola Renovables and 25%-owned by Gamesa Energía) to manage both companies’ pipelines in the countries falling under the agreement. In either case, the Gamesa Energía employees attached to the implicated development businesses will be transferred to Iberdrola Renovables.
Gamesa Energía’s pipeline in the UK now forms part of the strategic agreement, whereas the Dominican Republic assets that Iberdrola Renovables was originally slated to acquire have been carved out.
With this arrangement, the companies have maintained the spirit of the strategic agreement signed in June 2008, which was conceived of to facilitate the potential medium-term acquisition of Gamesa Energía’s wind power pipeline in the countries falling under the scope of the agreement, thereby reinforcing its position in markets of core strategic interest, simultaneously simplifying certain of the technical aspects.
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