ABB Signs Agreement to Acquire Power Electronics Business of Gamesa Electric

On December 18, 2024, ABB India announced that it had signed an agreement to acquire the power electronics business of Gamesa Electric in Spain, a subsidiary of Siemens Gamesa. This strategic acquisition aims to strengthen ABB’s position in the rapidly growing market for high-powered renewable power conversion technology.

The acquisition will significantly enhance ABB’s existing power conversion product and service offerings, specifically targeting renewable OEMs (Original Equipment Manufacturers) and end-users. It will provide ABB with a new portfolio of products and engineering assets that will support the profitable growth strategy of ABB’s Motion business area.

Details of the Acquired Business

The business being acquired by ABB specialises in electrical products for power conversion. This includes Doubly-fed Induction Generator (DFIG) wind converters, industrial battery energy storage systems (BESS), and utility-scale solar power inverters. Additionally, ABB will gain access to over 100 highly specialized engineers and two Spanish converter factories, located in Madrid and Valencia. The acquisition will also include around 400 employees, with key resources based in India, China, the United States, and Australia.

For the fiscal year ending September 30th, 2024, the power electronics business of Gamesa Electric reported revenues of approximately 170 million euros.

According to the International Energy Agency (IEA), global renewable capacity additions are expected to rise annually, reaching nearly 940 GW by 2030, up from 666 GW in 2024. Solar PV and wind power are projected to account for 95% of all renewable capacity growth through the end of the decade.

Chris Poynter, President of ABB’s System Drives division, emphasized that this acquisition aligns with ABB’s commitment to expanding its portfolio for high-power renewable applications and supporting productivity in a low-carbon world. The deal will also deepen ABB’s engineering capabilities in power conversion and grid connection, while offering significant opportunities to service an expanded installed base.

Increased Serviceable Installed Base

The acquisition will also enhance ABB’s serviceable power conversion installed base, adding around 40 GW. This will allow ABB to access new services, modernisation, and repower opportunities worldwide. Additionally, the deep domain expertise of the Gamesa Electric team will help broaden ABB’s digital offerings.

As part of the acquisition, ABB plans to enter into a supply and services agreement with Siemens Gamesa, further strengthening their ongoing collaboration. The acquisition is subject to regulatory approvals and customary closing conditions. It is anticipated to close in the second half of 2025.

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