European Markets Soar 3%; Gamesa, Siemens to Merge Wind Power Units

Sarla Buch
20 Jun, 2016
New York City

European markets soared more than 3% after Brexit worries eased. Gamesa and Siemens agreed to merge their wind power businesses. Majestic Wine profit tumbled 83% and lifted sales outlook. Palfinger plans to acquire Norway-based TTS Group.

[R]4:00 PM Frankfurt – European markets soared more than 3% after Brexit worries eased. Gamesa and Siemens agreed to merge their wind power businesses. Majestic Wine profit tumbled 83% and lifted sales outlook. Palfinger plans to acquire Norway-based TTS Group.[/R]

European markets staged its best one-day day in nearly four months after the latest polls in the U.K. showed more voters are preferring to stay in the European Union.

Market sentiment improved dramatically and banks led the gainers on the hopes that the bitterly divided U.K. voters may elect to stay in the union on June 23. The opinion polls are indicating that the “Remain” campaign is adding some momentum but the outcome is too close to call.

In London trading, FTSE 100 index jumped 180.89 or 3% to 6,201.61 and in Frankfurt the DAX index advanced 309.97 or 3.2% to 9,939.84.

In Paris, CAC 40 index surged 142.49 or 3.4% to 4,336.43.

Gamesa Corporacion Tecnologica SA slid 0.6% to €18.05 after the Spain-based wind turbines maker and Germany-based industrial conglomerate Siemens AG agreed to merge their wind power operations to create the world’s largest wind- turbine makers.

Under the terms, Siemens will hold stake of 59% and a cash payment of €3.75 per share or €1 billion or $1.1 billion after completion of the merger while Gamesa shareholders will hold 41% stake.

Majestic Wine Plc jumped 4.1% tto 455.75 pence after the U.K.-based wines, beers and spirits maker said sales in the year ending on March 28 soared 41.3% from a year ago to £402.1 million.

Net income in the year tumbled 82.9% from a year ago to £2.3 million compared to £13.5 million and diluted earnings per share slumped to 3.3 pence from 20.4 pence.

The wine maker said sales in 2019 of about £500 million and the company is on track with the earlier forecasted three-year transformation plan.

Palfinger AG gained 1.9% to €27 after the Austria-based hydraulic cranes maker’s subsidiary Palfinger Marine GmbH plans to acquire Norway-based TTS Group ASA for 5.60 Norwegian crowns or $0.67 per share.

In fiscal 2015, Palfinger Marine recorded revenue of about €170 million.