Vestas in talks with Mitsubishi Heavy

 

Vestas, a struggling Danish wind turbine manufacturer, is in rescue talks with Japan’s Mitsubishi Heavy Industries as it seeks to shore up its financial and competitive position.

Shares in the world’s largest wind company by sales soared yesterday after it said it was discussing a “potential strategic co-operation” with the Japanese group, which confirmed the talks.

The disclosure came days after Vestas’s new chairman, Bert Nordberg, said he was looking for an investor to take a 10-20 per cent stake.

The Danish group was forced this year to enter into talks with its banks about a debt restructuring, and last month negotiated a delay to the testing of its banking covenants.

Analysts yesterday speculated the talks with Mitsubishi Heavy were either about a capital increase and stake sale or about co-operating over the development of a new offshore wind turbine, where Vestas has said it is looking for partners.

Vestas has struggled in the past year as fierce Chinese competition and falling subsidies for wind power dented its profitability.

– (Copyright The Financial Times Limited 2012)