By Eyk Henning

FRANKFURT--Spain's Gamesa Corporacion Tecnologica SA on Friday confirmed it is in talks about combining wind-energy activities with Siemens AG, a tie-up that would create the world's largest wind turbine manufacturer by sales.

Gamesa and Siemens are in talks on "a potential integration of certain wind energy businesses," Gamesa said on Friday, but an agreement hasn't been reached, it added in a regulatory filing.

People familiar with the matter told The Wall Street Journal earlier on Friday that the companies were in talks.

The companies late last year struck an agreement in principle over a potential combination of their wind turbine activities, these people said, adding it was unclear what structure the potential combination would have.

Siemens had no immediate comment.

Investment banks Goldman Sachs Inc. and Morgan Stanley are advising on the potential transaction, the people said. Any deal would have to be agreed to by Spanish utility Iberdrola SA, which is Gamesa's largest shareholder with a 20% stake.

Spanish newspaper El Confidencial reported earlier that Siemens was planning an offer for Gamesa, propelling Gamesa shares 20% higher.

Jeanette Neumann and Ana Garcia contributed to this article.

Write to Eyk Henning at eyk.henning@wsj.com

(END) Dow Jones Newswires

January 29, 2016 13:08 ET (18:08 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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