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FRANKFURT—Germany's Siemens AG has held talks with Gamesa Corporacion Tecnologica SA on combining its wind and renewables business with the Spanish turbine maker, according to people familiar with the matter, a tie-up that would create the world's largest wind turbine manufacturer by sales.

It was unclear on Friday whether talks would result in a takeover bid by Siemens or another form of cooperation, these people said. Investment banks Goldman Sachs Inc. and Morgan Stanley are advising on the potential transaction, they said. Any deal would have to be agreed by Spanish utility Iberdrola SA, Gamesa's largest shareholder with a 20% stake.

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

The wind turbine industry is in consolidation mode. In a recent German/Spanish deal, Germany's Nordex SE acquired the renewable energy arm of Spain's Acciona SA in a €785 million ($850.2 million) deal last year. As part of the deal, Acciona now holds a 29.9% stake in Nordex.

A tie-up of the wind power activities of Siemens and Gamesa would create the world's largest wind turbine manufacturer by sales, with a market share of around 14% in 2014, according to data compiled by Statista. Siemens is currently number two, behind Denmark's Vestas SA, and Gamesa is the world's number eight.

Siemens' wind and renewables unit had revenues of €5.66 billion in the fiscal year that ended in September. Siemens overall revenue was €75.6 billion. Gamesa posted revenues of €2.5 billion in the first nine months of last year and forecast full-year sales of up to €3.4 billion.

Archibald Preuschat contributed to this article.

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

(END) Dow Jones Newswires

January 29, 2016 11:15 ET (16:15 GMT)

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