The European Commission has approved, under the EU Merger Regulation, the acquisition of joint control of EEW Offshore Wind EU by EEW Holding, both of Germany, and Sumitomo of Japan.
The transaction relates primarily to the manufacturing of large steel tubes used in the construction of offshore wind farms.
The Commission concluded that the notified transaction would not raise competition concerns, given the limited impact on the market structure. The notified transaction was examined under the simplified merger review procedure.
On August 14 2024, Sumitomo Corporation reached an investment and business operation participation agreement with EEW Offshore Wind EU Holding (EEW), a Germany-based worldwide leading manufacturer of “Monopiles”, large diameter steel pipes used for the foundation of bottom-fixed offshore wind power generation.
Investment Background
EEW is a worldwide leading supplier of monopiles. EEW’s strength is its mass production system enabled by sophisticated technology to bend extra-thick steel plates over 100mm thick and advanced high-quality welding technology. Sumitomo Corporation has been engaged in trading activities with EEW since the 2000s and has a strong business relationship with the company.
In recent years, the energy market in Europe has undergone significant change, such as a major growth in the renewable energy sector and numerous large-scale offshore wind projects. Europe’s offshore wind power development target is expected to rise to 164GW by 2030 and 549GW by 2050 in a generating capacity basis, and the demand for monopiles is forecast to increase from 650 thousand tons per year in 2023 to exceed 1 million tons per year in 2026.
Sumitomo Corporation’s initiatives in the offshore wind power industry
In Sumitomo Corporation’s Medium-Term Management Plan announced in May 2024, the business relating to offshore wind power industry was positioned as a GX (Green Transformation) business that will further enhance the company’s strengths and competitive advantages.
Sumitomo Corporation is developing businesses with the aim of contributing to the realization of carbon-neutral societies across the globe in a wide range of areas, including the offshore wind power generation business, ownership and operation of construction support vessels and heavy lifters, and the building of supply chains for floating offshore wind foundation structures.
Source: EC & Sumitomo
