Siemens nearing deal to buy US equipment maker Dresser-Rand

Oliver Smith
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The Dresser-Rand Group makes compressors and turbines for the US oil and gas industries
GERMAN industrial group Siemens is reportedly near an agreement to acquire US oilfield equipment manufacturer Dresser-Rand Group in an all-cash deal.

Dresser-Rand, which has a market capitalisation of more than $6.1bn (£3.74bn), could announce a deal as soon as today, according to Reuters.

Siemens is expected to pay low- to mid-$80s per share, compared with Dresser-Rand’s Friday closing price of $79.91, which had been boosted by takeover speculation over the past several days.

Discussions between the two companies are continuing and could still fall apart, sources close to the talks cautioned. Siemens declined to comment on any talks.

By acquiring Dresser-Rand, Siemens would get the company’s compressors and turbines serving the oil and gas industry at a time when a North American drilling boom boosts demand for energy services and equipment.