Albany, New York (09/23/2014) – While General Electric Company (NYSE:GE) was still in consideration for the acquisition of Dresser-Rand Group Inc. (NYSE:DRC), Siemens AG (ADR) (OTCMKTS:SIEGY) already announced that that the deal with DRC has been struck. The Germany-based Siemens announced about it’s approximately $7.6 billion deal (including debt assumptions) with the oil services and products company.
Siemens Seeks Prominence in American Energy Niche
As the American energy niche is taking a boom because of new natural gas and oil being tapped through latest drilling techniques, Siemens will get more prominence in this sector through the deal.
Over the past few months, Dresser-Rand Group Inc. (NYSE:DRC) had been fielding its inquiries and hiring advisers regarding potential buyers and bidders. However, Siemens has managed to bag the deal with its $83 a share all-cash transaction. Commenting on the deal, the CEO of Siemens AG (ADR) (OTCMKTS:SIEGY), Joe Kaeser also said that Dresser-Rand was its perfectly suited company for the portfolio. Now, Dresser-Rand will be an oil & gas company in Siemens only.
GE: Not too Serious in Pursuing this Deal
Apart from Sulzer, a Switzerland based pump maker, reports of the General Electric Company (NYSE:GE) considering for this deal, were also flowing around. However, people associated with GE’s plans said that it never considered the deal for serious discussions or for making a bid for the same.
As per The New York Times, the people who were aware of this deal, disclosed that GE was not very interested for Dresser-rand deal and so, it did not consider it for bidding as well.
Interestingly, the deal between Dresser-Rand and Siemens will be seen as the latter’s victory; especially after Siemens lost to General Electric Company (NYSE:GE) in relation with Alstom’s energy assets. By acquisition of Dresser-Rand, Siemens will be able to expand its presence towards technologically-based extraction method (hydraulic fracturing), which allows for a lot of swaths related to drilling of land.