Siemens announced its plans to acquire Dresser-Rand, as it now prepares a cash offer of more than $6 billion, citing sources familiar with the matter.
‘Maintain a Significant Presence’
The US oil and gas company is famous for developing compressors, turbines, and other rotating equipment.
Dresser-Rand confirmed the acquisition as it released a statement, saying Siemens “plans to operate Dresser-Rand as the company’s oil and gas business, retaining the Dresser-Rand brand name and its executive leadership team.”
“In addition, Siemens intends to maintain a significant presence in Houston, which will be the headquarters location of the oil and gas business of Siemens,” it added.
Boost Brand Presence
Industry watchers believed that if Siemens and Dresser-Rand merge became successful, the oil and gas industry would soon show improvements.
Currently, one of Siemens’ departments produces supplies equipment for companies that extract natural gas.
The deal is in line with Siemens Chief Executive Joe Kaeser’s plan to build and strengthen the company’s presence in the US energy market and gain bigger market share.