Siemens has secured a wind turbine deal with Gamesa, a Spanish renewables group.

The German company will pay 3.75 Euros per share to Gamesa shareholders as part of a deal that will see the two firms’ wind businesses combine to form the biggest turbine builder in the world, with a valuation of around 10 million Euros.

The two companies have been in discussion about the terms of the terms of the deal since the start of the year and it has been decided that Siemens will take a 59% ownership of the combined entity.

After the merger has been completed, the business will be listed and have its headquarters based in Spain, with an anticipated order backlog of around 20 billion Euros, with operating profits of 839 million Euros and annual revenues of 9.3 billion Euros.

Furthermore, the companies hope the deal will lead to around 230 million Euros of earnings synergies every year, before tax and interest.

The cash payment of 3.75 Euros per share by Siemens represents 26% of the Spanish firm’s share price of January this year, before it was announced that talks were taking place between the two companies.

Gamesa’s shared closed at 15.475 Euros on Thursday before they were suspended the following day.

Chairman of the Spanish firm, Ignacio Martin, said that the deal to merge with Siemens has come from a recognition of the company’s work over the past few years and is evidence of its commitment to long term generation value through the creation of substantial synergies which extend the horizon of profitable growth for the firm.

He anticipates that the combined group will become one of the dominant players in wind turbine construction, adding that they are embarking on a new era along with a world leading player in the wind industry.

He told investors that Gamesa will now be able to continue their work as part of a stronger organisation with a better ability to provide its customers with end to end solutions.