Siemens has agreed to acquire Houston-based oil and gas equipment manufacturer Dresser-Rand for $7.6 billion in cash. Via the Wall Street Journal, the German engineering giant beat out Swiss rival Sulzer, which was in talks last week to merge with Dresser-Rand. GE was also said to be considering a bid for the compressor and turbine manufacturer. Siemens is seeking a foothold in the U.S. shale oil and gas market for its gas turbines and natural gas extraction equipment.
Siemens will keep the Dresser-Rand name and retain its executive leadership team. Siemens President and CEO Joe Kaeser said Dresser-Rand would become “the oil and gas company within Siemens.”
“As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio,” Kaeser said. “The combined activities will create a world-class provider for the growing oil and gas markets.”
The transaction is expected to close next summer.
SEE ALSO: Western Refining to buy idled ConocoPhillips fractionation plant
