Danish wind generator manufacturers Vestas and NEG Micon are planning to merge their businesses, creating what will be a giant in the wind turbine business with a 35% share of the market.

The two companies believe that their individual strengths complement each other and that the combined company will be better placed to compete in future markets by enabling it to meet its customers’ requirements for larger, more powerful and complex turnkey solutions.

The merger will be effected through a one for one share swap offer to NEG Micon shareholders of shares in Vestas, which will be the continuing company. This will require a capital increase in Vestas which will be put to stockholdrs at a meeting on December 30. The swap implies a 30% premium to Micon shareholders, and its biggest single shareholder, Schouw & Co AS, has indicated that it is willing to exchange its holding under the offer.