Emerson's Network Power

Reports: Siemens Eyes U.S. Acquisition

Siemens ceo Joe Kaeser 2015 source bloomberg
Siemens CEO Joe Kaeser is reportedly looking at his next acquisition target.
  • Why it matters

    Why it matters

    The acquisition of Emerson Electric’s power network business could strengthen Siemens’ position in the United States and enable better competition with arch rival General Electric.

  • Facts

    Facts

    • Emerson Electric said last June it wanted to spin off its network power business.
    • The operations, which make power systems for data centers, could be worth as much as $4 billion, or €3.5 billion, according to Reuters.
    • Siemens CEO Joe Kaeser has been buying and selling assets since taking charge in 2013 and could merge its wind turbine operations with Spanish peer Gamesa.
  • Audio

    Audio

  • Pdf

Siemens Chief Executive Joe Kaeser might again make 2016 a year of blockbuster takeovers and deals.

Munich-based Siemens is in early-stage talks with Emerson Electric to buy the U.S. company’s network power business, news agencies Reuters and Bloomberg reported late Monday, citing unnamed people familiar with the matter.

The business could be worth as much as $4 billion, or €3.5 billion, according to Reuters. Emerson Network Power had sales of $4.4 billion in its fiscal year 2015, which ended on September 30 last year.

Siemens, which has spent around $10 billion on acquisitions since December 2013, declined to comment on the reports when contacted by Handelsblatt Global Edition.

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