(Reuters) – Siemens Energy is close to striking a deal to sell Siemens Gamesa’s 32% stake in Windar Renovables, a source close to the matter said on Friday.

Siemens Energy and Windar declined to comment on the matter, which was first reported by Spain’s Expansion newspaper.

The report said British fund Bridgepoint would buy wind turbine tower manufacturer Windar Renovables for $700 million, taking over Siemens Energy’s 32% stake and part of the the remaining 68% held by Daniel Alonso Group.

Bridgepoint was not immediately available for comment.

Pandemic-related supply chain problems, competition and skyrocketing steel and aluminium prices – exacerbated by Russia’s invasion of Ukraine – have made manufacturing wind turbine components a tough business in recent years, despite strong demand from governments banking on wind energy to wean themselves off fossil fuels.

Siemens Energy is planning to buy the remaining 2% in its struggling wind turbine maker Siemens Gamesa during a two-day extraordinary shareholder meeting on June 12-13.

The company’s shares were up 0.6% as of 0840 GMT.

(Reporting by Christoph Steitz, Bartosz Dabrowski and Inti Landauro; editing by Rachel More)