European Commission approves Siemens’ $7.8bn acquisition of Dresser-Rand

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.

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.