ABB strengthens growth strategy with strategic acquisition in Spain

ABB has agreed to acquire the power electronics division of Gamesa Electric in Spain, which is currently operated under Siemens Gamesa. The transaction is subject to regulatory approvals and other customary closing conditions, with completion expected in the second half of 2025. Although financial details of the transaction have not been disclosed, the acquisition is a key component of the growth strategy for ABB’s Motion business area. The strategic move aims to strengthen ABB’s position in the market for high-performance renewable power conversion technology and expand the product and service offering for original equipment manufacturers (OEMs) and end users in the renewable energy sector. As part of the acquisition, over 100 highly specialized engineers and two Spanish converter factories in Madrid and Valencia will be integrated into ABB. The team also includes key resources in India, China, the USA, and Australia. Gamesa Electric’s electronic power division achieved sales of 170 million euros in the fiscal year ending September 30, 2024. The global capacity expansion for renewable energy is expected to grow annually and reach 940 GW by 2030, according to the International Energy Agency. Solar PV and wind will account for 95% of this growth. With this acquisition, ABB will expand its installed power conversion base by 40 GW and unlock new opportunities in service, modernization, and repowering through its global network. The expertise of the Gamesa Electric team is expected to enhance the scope of ABB's digital offerings. ABB plans to establish a supply and service agreement with Siemens Gamesa to ensure a continuing partnership and growth in the renewable energy sector. ABB System Drives Division President Chris Poynter emphasized: "This targeted acquisition aligns with our commitments to expand our portfolio for high-performance applications in renewable energy and support productivity in a low-carbon world. With this acquisition, we will be much better positioned to benefit from the expansion of the market for power conversion in renewable energy while building on our relationship with Siemens Gamesa as a key partner.