Siemens Energy should take the reins of Siemens Gamesa and buy the remaining shares in the turbine maker.

The demand comes from Union Investment, which is the fifth largest shareholder of Siemens Energy, writes Reuters.

Siemens Energy owns 67 percent of the shares in Siemens Gamesa, which has faced headwind in 2021 due to high costs, weak growth and a deficit on the bottom line.

This prompted the majority shareholders to install board member of Siemens Energy Jochen Eickholt as CEO of turbine maker starting from March and 18 months ahead.

”Siemens Energy must finally take over and integrate Siemens Gamesa completely,” writes Union Investment in a statement ahead of Siemens Energy’s annual general meeting on Feb. 24, according to Reuters.

”This will secure the urgently needed full control and at the same time increase the share of sales from renewable energies, which means killing two birds with one stone,” notes Vera Diehl, who serves as portfolio manager at Union Investment, which owns 1.19 percent of the shares in Siemens, according to data by Refinitiv.

The statement comes a month after sources told Reuters that work is underway at Siemens Energy on integrating the turbine producer.

The shareholder argues that Siemens Gamesa should undergo restructuring and that an experienced manager should be brought in to take charge of the restructuring efforts after Eickholt.

Union Investment further demands that a detailed restructuring plan including milestone targets is presented and that Siemens Gamesa must get control of risky and loss-making projects, thereby putting a stop to the downward slide of Siemens Energy’s share price.

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