The German Industrial giant Siemens AG has agreed to acquire the U.S. oilfield equipment maker Dresser-Rand Group Inc for $7.6 billion, trumping the competing offer by the Swiss pump maker Sulzer.
The move will allow Siemens to have more of a presence in North American oil and gas businesses. Dresser-Rand makes compressors and turbines for the oil and gas industry.
Siemens has had an interest in Dresser-Rand for years. Joe Kaeser, CEO of Siemens, said that the company had not managed to make the best of the boom in shale gas extracted by hydraulic fracturing – a boom which has caused a huge demand in energy equipment.
Chief Executive Joe Kaeser said in a statement on Monday:
“As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio. The combined activities will create a world-class provider for the growing oil and gas markets.”
Vincent Volpe Jr., Dresser-Rand’s chief executive officer, said:
“This is a transaction that should create value for clients, as well as for both sets of shareholders, that would not have been achieved had Dresser-Rand not become part of the Siemens group.”
The Siemens bid of 83 per-share bid was unanimously supported by Dresser-Rand’s board of directors.
Siemens expects to complete the transaction by summer 2015. Meanwhile, the company will also be preparing the sale of its stake in its household appliance venture BSH with Bosch.