BRUSSELS, Jan 6 (Reuters) – The European Commission has approved the acquisition of joint control over EEW Offshore Wind EU by EEW Holding and Japan's Sumitomo, under the EU Merger Regulation, allowing the transaction to move forward without raising significant competition concerns.
The deal follows Sumitomo's acquisition of an equity stake in EEW Offshore Wind Holding in mid-2024, positioning the two companies as key players in the European offshore wind industry. The primary focus of the transaction is EEW Offshore Wind's role in manufacturing large steel tubes, a vital component in the construction of offshore wind farms.
The Commission's review of the transaction found that it would have limited effects on market structure and competition, leading to a green light for the deal. The approval process followed the simplified merger review procedure, which is typically applied to transactions with fewer competitive issues. Given the nature of the companies' combined operations, the Commission determined that the acquisition would not harm competition in the relevant markets.
EEW Offshore Wind Holding, which combines monopile business operations with the Rostock production site (EEW SPC) and associated mechanical engineering activities at AWS Schäfer and Siegen, will now be jointly controlled by EEW Holding and Sumitomo. This joint venture aims to strengthen both companies' positions in offshore wind energy production, particularly as demand for renewable energy sources continues to rise across Europe.
In a statement, the Commission noted that the transaction would likely not lead to any significant market concentration. “The combination of EEW Holding and Sumitomo's operations will not result in any substantial reduction of competition,” the Commission said. This conclusion was based on the companies' relatively limited overlap in the markets affected by the transaction.
The deal reflects the growing importance of the offshore wind industry in Europe's renewable energy landscape, with offshore wind farms playing a central role in meeting climate goals. EEW Offshore Wind is well-positioned to benefit from increased demand for clean energy and the growing need for specialized manufacturing, particularly steel tubes, which are essential for the construction of offshore wind turbines and their foundations.
The approval of the deal also underscores the importance of strategic partnerships in the renewable energy sector, where large-scale investments and collaborations are essential to meet ambitious sustainability targets. Both EEW Holding and Sumitomo are expected to benefit from synergies created by the deal, including enhanced access to manufacturing capabilities and an expanded footprint in key European markets.
As the renewable energy transition accelerates, the joint control of EEW Offshore Wind EU by EEW Holding and Sumitomo is poised to contribute to the ongoing growth of the offshore wind sector. The companies plan to leverage their combined resources to support the construction of more offshore wind farms, which are essential to Europe's efforts to reduce carbon emissions and meet its energy security objectives.
