Well, consolidation is coming to the wind turbine business and this bidding war between Gamesa and Vestas over Hansen Gearbox Maker from Suzlon is the first big bang heard round the world. More and more consolidation is coming to the wind turbine business and Suzlon being forced to sell the gearbox maker it recently aquired is the exact example I am talking about when companies must sell components or they go under. Suzlon and Acconia and others are struggling as Vestas and GE battle Siemens with around 70% of the world wide market share. All the others in the world are scrambling for table scraps as Vestas, GE , and Siemens are taking market share from struggling worldwide credit crisis in financing renewable wind farms.

Below was cut and pasted from ET:::
MUMBAI: Spanish wind turbine maker Gamesa and Vestas of Denmark are in the race to acquire London-listed Hansen Transmissions from Pune-based Suzlon
Energy. A person close to the deal said Tulsi Tanti-controlled Suzlon, the world’s fifth-largest and India’s biggest turbine maker, is expected to seal the deal by this weekend.

Suzlon is learnt to have convened a board meeting on Saturday to discuss its consolidated financial results for FY09 and the sale of its entire 61% stake in Hansen, said the same person.

The deal size is expected to be above $1 billion, a premium to the ruling market price of the Hansen stock. The market capitalisation of Hansen is pegged at around $1.6 billion. The stock was trading at £1.50 ($2.47) on the London Stock Exchange, 6.4% higher than the previous close, at the time of going of going to press. At this price, Suzlon’s stake is valued at slightly less than $1 billion.

The exact deal size will depend on the control premium Suzlon commands from the buyer and the liabilities of the target company, said an investment banker. Suzlon COO Sumant Sinha declined to comment. ET was the first to report on Suzlon’s move to sell Hansen in its edition dated June 15.

“Belgian company Hansen supplies gearbox to turbine makers. The sale decision is not the best strategy for Suzlon,” the analyst, who did not wish to be named, said. The proposed sale is part of an overall restructuring plan put together by JP Morgan and Macquarie that seeks to reduce Hansen’s debt of Rs 12,000 crore and provide bondholders with an agreeable exit option.

In January, Suzlon had sold 10% of its Hansen stake to investment firm Ecofin for Rs 600 crore. Suzlon holds its stake in Hansen through a subsidiary called AE-Rotor Holding.

Meanwhile, Suzlon announced on Thursday that it will pay $1.87 million incentive fee to bondholders, as part of a plan to pare debt. The total principal amount of the bonds outstanding is $ 121 million.The Suzlon stock closed flat at Rs 117.85 on BSE on Thursday.