AMSC backs out of $265m takeover of The Switch

AMSC has dropped a $265m acquisition of The Switch Engineering Oy, citing financing problems under current market conditions.

But the wind turbine parts maker ” formerly known as American Superconductor Corp ” expects to continue working on drivetrain solutions with its Finnish counterpart, said CEO Daniel P McGahn.

A dispute with its largest customer, Sinovel Wind Group Co, has recently dimmed prospects for AMSC, which announced in August plans to reduce its work force by 30 per cent.

The Switch sells power-converter systems and permanent magnet generators to wind turbine manufacturers in China, Europe, South Korea and the US. Its shareholders will retain a breakup fee of about $20.6m.

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