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Siemens Buying Dresser-Rand for $7.6 Billion

In the latest move shaking up the gas turbine business, Siemens agreed to acquire oil and gas services company Dresser-Rand for $7.6 billion in cash.

Dresser-Rand manufactures turbines and compressors for the oil and gas sector, and is a major supplier for upstream natural gas firms and pipeline companies. The deal comes after Siemens acquired Rolls Royce’s turbine business in June for $1.3 billion.

The transaction must still be approved by Dresser-Rand shareholders, and there is a possibility of a competing offer from General Electric (GE), according to reports. Siemens and GE competed to purchase most of Alstom’s energy business earlier this year, with the American firm prevailing in a $16.9 billion deal on June 23. Swiss pump maker Sulzer was reportedly also looking to close a deal for Dresser-Rand, but it said it had ended talks with the company.

Siemens has reportedly been looking at acquiring Dresser-Rand for several years in an attempt to expand its reach in the North American energy sector, especially shale gas. If successful, the deal is projected to close next summer.

“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,” said Siemens President and CEO Joe Kaeser.

Siemens will continue to operate Dresser-Rand as its oil and gas business, headquartered in Houston, and retain the Dresser-Rand name, according to a statement.

 —Thomas W. Overton, JD is a POWER associate editor.

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