WASHINGTON (dpa) – German engineering company Siemens will buy US oil equipment maker Dresser-Rand Group for 7.6 billion dollars, The Wall Street Journal reported Monday.
Siemens will pay 83 dollars a share for the acquisition, the report said. Dresser-Rand shares had risen more than nine per cent on Friday. The German company beat out Switzerland-based Sulzer AG, which was also said to be eyeing a deal with Dresser-Rand.
The all-cash deal offered by Siemens was likely more attractive than the stock-based merger reportedly being suggested by Sulzer AG, the report said.
With the acquisition, Siemens’s gas-extraction capabilities will be expanded and the company can better capitalize on the US shale-gas boom, the Journal said.