Mingyang wants to acquire Vestas, the global wind power manufacturing boss

China Securities Journal reporter recently learned from several sources that Mingyang Wind Power, which is listed in the United States, is currently considering acquiring Vestas, the largest Danish wind power equipment manufacturer. It is understood that the transaction involved in the acquisition is huge. If the acquisition is completed successfully, Mingyang Wind Power will replicate Geely's acquisition of Volvo's classic case in the wind power field.

Ming Yang wants to play "Swimmers"

“Currently, the company’s top management has heard a little about the acquisition, but the extent of the specific progress is not yet clear.” For Mingyang Wind Power's desire to acquire Vestas, the China Securities Journal reporter obtained an insider from the company. Confirmed.

Founded in 2006, Ming Yang Wind Power, which was listed on the main board of the New York Stock Exchange in the United States in October 2010, has not escaped the cold weather of the global wind power market in the past two years. According to wind data, as of July 6th, Mingyang’s wind power share price was 1.17 US$ and the total market value was 146 million US dollars, a decrease of 81.37% over the past year.

A company that has just been established for 6 years, to acquire a total market capitalization of 723 million euros with a volume of 146 million US dollars, has 20,000 employees and holds the world's leading market share of 20% of the market, so that people in the industry are surprised that this will be Geely acquired Volvo's replica of the wind power industry.

The above-mentioned Mingyang Wind Power related person stated that the acquisition of Mingyang Wind Power alone will be more difficult and may be accomplished through cooperation with various agencies. According to industry analysts, as Vestas is facing huge debts, the major problem faced by the acquisition is to inject capital into Vestas to repay its debts.

The website of the Economic and Commercial Counselor's Office of the Chinese Embassy in the United Kingdom quoted a report from the Times of the United Kingdom in early July that Vestas was currently facing a huge debt of 2 billion euros and considering selling some assets. The foreseeable solutions include the sale of assets to industry giants such as GM and Siemens that are increasingly interested in renewable technologies.

Regarding the rumors of the acquisition, the reporter of the China Securities Journal received a reply from Vestas (China) Vice President Lu Ming that he has not heard any relevant news and is not in a position to comment on the matter.

Vestas "thin"

As early as April of this year, foreign media reported that Sinovel Wind Power, a leading domestic wind turbine company, and Goldwind Technologies intends to acquire Vestas, but Vestas has not responded positively. China Securities Journal reporter learned that Vestas's search for buyers on a global scale is not groundless.

The reporter learned from relevant personnel of Goldwind Technology that at the end of last year and early this year, both domestic and foreign investment banks including CITIC Securities and Deutsche Bank had contact with Goldwind, but considering Vestas’ double feed and gold The direct drive of the wind is different from the two technical routes. This point of contact does not involve the acquisition of specific details. Huarui Wind Power also said that he had discussed this issue with Vestas, but the depth of the topic was limited to “chat” and did not involve more substantive issues.

Despite failing to reach a substantive agreement with the complete machine manufacturer, Vestas's "downsizing" did not stop. On June 14 this year, Tianshun Wind Energy issued an announcement saying that Tianshun Europe, a subsidiary of the company, acquired all operating assets of Vestas and Vestas Blades' wind tower production plant in Varde, Denmark, in cash, totalling 15.18 million euros. Shortly thereafter, on June 25, Vestas announced that it will initially halt production of its kilowatt-class turbine platform and close its factory in Hohhot, China, where 300-350 employees will be affected. influences.

Although the stock price movements are similar, compared with the contraction of Vestas, Mingyang Wind Power has demonstrated its expansion potential. On July 2nd, Mingyang Wind Power invested 25 million U.S. dollars and subscribed for new shares issued by GWPL, a subsidiary of India's largest private power company, Reliance Group, with 55% of the shares. In the next three years, Ming Yang will use this cooperation platform to expand the Indian market.

According to industry insiders, Ming Yang is a public company listed in the United States and a private company at the same time. This is the advantage of Mingyang Wind Power's acquisition of Vestas. However, the technical route of Mingyang Wind Power is not completely connected with Vestas. In addition, how to undertake the repair and maintenance of tens of thousands of wind turbine units of Vestas in 66 countries around the world. For Mingyang Wind Power, it will also be A huge test.