1 May, 2002 – Competition authorities at the European Commission have cleared the acquisition by General Electric (GE) unit GE Power Systems of Enron’s wind turbine business.
The deal had to comply with merger regulations but the commission said that it had no concerns.
It said wind turbines, at present, can be distinguished from other forms of power generation because of their technical characteristics, availability and reliability. “Consequently, there are no horizontal overlaps between the activities of GEPS and Enron’s wind turbine business,” the commission said.
Last month the New York judge presiding over the bankruptcy of Enron agreed that Enron Wind could be sold to GE. Judge Arthur Gonzales approved the sale after GE won the bidding in a court-sponsored auction on April 2.
The wind turbine building assets of Enron Wind Co will transfer to the GE subsidiary in a deal costing GE $325m in cash plus about $17m in other considerations, Enron spokesman John Ambler said.
It is GE’s first investment in the growing wind market and the group sees Europe, the US and Latin America as its main markets.
The transaction does not include Enron’s wind farm assets. Enron Wind has manufacturing plants in the US, Germany, Spain and the Netherlands and also has 11 sales offices in various countries around the world.
Enron wind is the seventh largest wind turbine manufacturer in the world in a market dominated by European’s. The unit’s revenues have grown from about $50m when it was acquired by Enron in 1997 to some $750m in 2001.