Voith to buy out Siemens Energy’s 35% stake in Voith Hydro JV

Voith Group is set to take full ownership of Voith Hydro, after signing a deal to acquire the remaining 35% stake from its joint venture (JV) partner Siemens Energy for an undisclosed price, as per an announcement made in late October.

Formerly called Voith Siemens Hydro Power Generation, the joint venture was established in 2000 when Siemens and Voith combined their operations in the field of turbine and generator technology for hydropower plants. In 2020, the shares of Siemens in the joint venture were transferred to Siemens Energy.

The buy-out deal is part of Voith’s ongoing strategy to bolster its core business in the field of sustainable technologies. Through this approach, the German company is expected to benefit from the increasing role of hydroelectric power in the renewable energy mix and act as an innovator in the energy transition.

Dr. Toralf Haag — President and CEO of Voith Group said: “For a few years now, our strategy has been to tap into promising business fields in connection with the megatrends of digitalization and decarbonization and expanding our core business in this direction.

“After a number of strategic acquisitions in our Paper and Turbo Group Divisions, we are pleased that with complete ownership of Voith Hydro, we will be able to drive the expansion of hydropower even further in the future.”

Voith to buy out Siemens Energy’s 35% stake in Voith Hydro JV. Photo courtesy of Voith GmbH & Co. KGaA.

Voith Hydro is a supplier for equipping hydroelectric power plants around the world. Currently, it is said to have a thorough knowledge as a complete provider of “water to wire” solutions. This makes the original joint venture structure irrelevant for its business operations, said Voith.

The group also said that there will not be any changes in personnel changes in the division’s management or anywhere else at Voith Hydro.

Siemens Energy said that its portfolio is mainly focused on transporting and storing energy, producing electricity with little or no CO2 emissions, and decarbonizing industrial processes. The hydropower sector, on the other hand, has had a lower priority in its business plans, said the company.

Dr. Jochen Eickholt — Siemens Energy Executive Board Member said: “The transaction is further evidence that we’re consistently aligning our portfolio with our core business. Less complexity, more efficiency – this is how we want to position Siemens Energy for the future.

“With the takeover of all the shares, our previous partner Voith will be able to pursue the expansion of hydropower in the electricity mix even more consistently, which is the optimal solution for everyone involved.”

The transaction, which is subject to antitrust and other approvals, is expected to be completed by the end of Q1 2022.