Date
21 September 2017
The acquisition would allow Siemens to cash in on the drilling boom in North America. Photo: Bloomberg
The acquisition would allow Siemens to cash in on the drilling boom in North America. Photo: Bloomberg

Siemens said to be near deal to buy Dresser-Rand

Siemens is close to acquiring US oilfield equipment maker Dresser-Rand Group in an all-cash deal that would allow the German conglomerate to take advantage of the drilling boom in North America, Reuters reported Sunday, citing people with knowledge of the matter.

Siemens is likely to pay low- to mid-US$80s per share, compared with Dresser-Rand’s Friday closing price of US$79.91, which already had been trading higher on takeover speculation in the past few days. Dresser-Rand has a market capitalization of more than US$6 billion.

A deal for Dresser-Rand could come as early as Monday, the sources said, adding that the ongoing discussions could still fall apart.

There were no comments from either Siemens or Dresser-Rand.

Siemens has trumped a competing bid from Swiss pump maker Sulzer, which had proposed an all-stock “merger of equals” with the combined company based in Switzerland, the sources said.

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CG

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