European Commission has approved the acquisition of US based rotating equipment manufacturer for oil and gas industry, Dresser-Rand by German conglomerate Siemens for $7.8bn.
Siemens is expected to close the deal by the end of the month.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
EU competition commissioner Margrethe Vestager said: "After a detailed assessment of the markets involved, the Commission is satisfied that European consumers will not be negatively affected by the merger."
The German firm will pay $85.20 for each share to all Dresser-Rand shareholders as a part of the acquisition.
Siemens intends to incorporate Dresser-Rand’s business with its compressor unit and the related service business to form a new Dresser-Rand unit.
The integrated unit will operate as a part of Siemens Power and Gas Division to serve the global oil and gas industry.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSiemens managing board member Lisa Davis said: "With Dresser-Rand on board, we now have a comprehensive portfolio of equipment and capability for the oil and gas industry and a much expanded installed base, allowing us to address the needs of the market with world-class products, solutions and services.
"So despite the challenges of a low oil price, this also brings opportunities as we focus our efforts on offers that reduce costs and increase efficiency."
Siemens will continue with the well-established brands under Dresser-Rand’s portfolio and retain Dresser-Rand’s current CEO Vincent Volpe, to lead the business during the initial integration phase.
The German firm is expecting to benefit €200m in annual synergies from 2019.
