Siemens to spin off its Gas and Power division

Germany: Siemens has announced its plans to spin off and give up the majority stake in its Gas and Power division (which is comprised of conventional power generation, power transmission, oil and gas) and related services businesses.

Siemens will also transfer its current majority 59 % stake in Siemens Gamesa Renewable Energy (SGRE) to the new business.

The company’s supervisory board announced as part of its Vision 2020+ strategy concept. The board said the move would help Germany-based Siemens meet medium-term growth and profit targets by “clearly focusing its portfolio on dynamic growth markets and efficiency gains.”

The Gas and Power spinoff and transfer of SGRE stake would create a new “major player on the energy market” with a business volume of $34 B (€30 B), Siemens said. This will give the new company “complete independence and entrepreneurial freedom,” it said. The spinoff will put Siemens’ Digital Industries (DI) and Smart Infrastructure (SI) divisions as its core. “This core will be supplemented by company-wide technology and service units and the company’s strategic majority stake in Siemens Healthineers. Siemens Mobility is also to be further strengthened as a growth business,” the company said.

Source: Power Mag