Roland Busch, CEO of Siemens AG, attends Siemens' annual press conference in Munich, Germany, Thursday, Nov. 17, 2022. The German government says it is granting a 7.5 billion-euro ($8 billion) loan guarantee to energy technology company Siemens Energy as part of a package to help the firm, an important player in the transition to renewable energy sources. Siemens Energy sought help from the government as it struggles with problems at its Gamesa wind energy subsidiary (Sven Hoppe/dpa via AP, File)Two of the Siemens Gamesa offshore wind turbines stand off the coast of Virginia Beach, Va., Monday, June 29, 2020. The German government says it is granting a 7.5 billion-euro ($8 billion) loan guarantee to energy technology company Siemens Energy as part of a package to help the firm, an important player in the transition to renewable energy sources. Siemens Energy sought help from the government as it struggles with problems at its Gamesa wind energy subsidiary (AP Photo/Steve Helber, File) BERLIN (AP) — The German government said Tuesday it is granting a 7.5 billion-euro ($8 billion) loan guarantee to energy technology company Siemens Energy as part of a 15 billion-euro package to help the firm, an important player in the transition to renewable energy sources.
Siemens Energy sought help from the government as it struggles with problems at its Gamesa wind energy subsidiary, including quality issues with previously installed wind turbines.
The company said on Oct. 26 that “the strong growth in order intake, particularly in the former gas and power business areas, leads to a rising need of guarantees for long-term projects.” It said it was in talks with partners, including the government, to ensure access to guarantees "to facilitate the anticipated strong growth."
The government held talks with Siemens Energy, industrial conglomerate Siemens AG — which spun off Siemens Energy in 2020 and retains a minority stake in the company — and with private banks.
The Economy Ministry said Tuesday that the government's precondition for helping was “that all stakeholders participate appropriately in safeguarding the company.”
It said the outcome was a package of 15 billion euros in guarantee lines, of which private banks would provide 12 billion euros and with Siemens Energy securing the rest in negotiations with “further stakeholders.” The government agreed to backstop the bank guarantees to the tune of 7.5 billion euros.
In addition, Siemens Energy and Siemens AG plan to negotiate the sale of shares in a joint venture that would bring in about 2 billion euros for Siemens Energy, the ministry said.
Siemens Energy won't be able to offer a dividend or pay bonuses to its management while the measures are under way.
___
Follow AP's coverage of climate issues and the environment at https://apnews.com/climate-and-environment
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Which stocks are likely to thrive in today's challenging market? Click the link below and we'll send you MarketBeat's list of ten stocks that will drive in any economic environment.
Get This Free Report
