Last Updated: Friday, 25 May 2007
Indian firm wins wind power fight
http://news.bbc.co.uk/2/hi/business/6691413.stm
[The German wind sector is booming]
India's Suzlon Energy has won control of German wind power firm Repower after a tough battle with French rival Areva.
Both Suzlon and Areva made competing bids for Repower and acquired significant stakes in the business.
But Suzlon's higher 1.2bn-euro (£817m) offer was recommended by Repower's board, leaving it in a strong position.
Contested takeover battles are rare in Germany and Suzlon's victory reflected Indian companies' growing emergence as powerful global players, analysts said.
Areva has conceded defeat but stressed it would retain it interest in Europe's fast-growing renewable energy market.
Investment pledge
Repower is one of Germany's leading manufacturers of wind turbines, with a 10% share of the overall market.
Suzlon said it now effectively controlled 60% of the firm's shares, although some shareholders have yet to decide whether to accept its offer.
[Suzlon has emerged as a true global player with a strong footprint across all the key wind markets
Tulsi Tanti, Suzlon Energy]
In its bid, Suzlon pledged to build a global wind technology centre in Hamburg to counter fears it might transfer jobs to India.
Suzlon said it was committed to developing Repower's offshore wind business in Europe.
"With this acquisition, Suzlon has emerged as a true global player with a strong footprint across all the key wind markets," said its chairman Tulsi Tanti.
In a statement, Areva said it was "very unlikely" that it would be able to acquire sufficient shares to gain control of the business and therefore it would withdraw.
However, Areva will not step back completely and will be the preferred electricity distribution and transmission company for Suzlon in Europe.
"Areva maintains its strategic objective of focusing on the development of renewable energies," it added.