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.

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Siemens 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.