Siemens Energy has confirmed a US$4.3Bn billion offer to buy the remaining 32.9% minority stake in its publicly traded renewables subsidiary, following turbulent trading conditions over the past 18 months.

Siemens Energy is looking to take Siemens Gamesa private in order to accelerate the turnaround of the renewable energy company that has been beset with rising raw material costs and supply chain bottlenecks over the last six months. The deal values Siemens Gamesa at around 1.2 times forward sales, slightly behind the 1.4 times multiple for stock-market peer Vestas Wind Systems. In addition to general market forces, the company’s onshore division has also underperformed following costly delays in the launch of its new 5.X turbine.

The proposed deal reopens the question as to whether long-term renewable technology investments are better valued by the markets or through private ownership, albeit through a public company owner. Siemens Energy is conflicted by being both the majority shareholder and bidder in this case, but long-term valuations and short-term margin and supply chain volatility are calling into question the effectiveness of the market’s role in delivering sustainable cleantech solutions to fuel the energy transition.