Akihabara News (Tokyo) — Mitsubishi Heavy Industries (MHI) is on track to gain a minority stake in Vestas Wind Systems after the European Commission gave its consent for a proposed all-stock deal to move forward.
Under the arrangement, Denmark-based Vestas Wind Systems will acquire Mitsubishi’s 50% stake in MHI Vestas Offshore Wind for around $US847 million and Mitsubishi will receive over 5 million shares, or a 2.5% stake, in the mother company Vestas Wind Systems, including a seat on the board of directors. With the approval of the European authorities now in hand, the deal is expected to be implemented by the end of this year.
Vestas CEO Henrik Andersen issued a statement declaring that he is “personally very encouraged by the many dialogues I’ve had with both Vestas and MHI Vestas Offshore Wind colleagues, as well as our customers and partners, since we announced the strengthened partnership with Mitsubishi Heavy Industries. It’s clear that everyone is excited about our bold step together towards accelerating the energy transition.”
MHI Vestas will be folded into Vestas, with the Danish firm openly aiming for a global lead in market share in the offshore wind turbine space by 2025.
MHI Vestas was created in April 2014. It operates on a global scale, but among its projects is the Akita Noshiro Offshore Wind Farm Project. This contract calls for the firm to install a total of 33 turbines around 2022 at two locations along the coast of Akita Prefecture. These wind farms will have an expected combined output of 139 MW, enough to supply the equivalent of nearly 130,000 homes.
At the end of October, Johnny Thomsen was appointed as CEO of MHI Vestas Offshore Wind, with Tatsuichiro Honda as co-CEO and chief financial officer.