Tags: Siemens | Invensys | buy | Rail

Siemens to Buy Invensys Unit for $2.78 Billion to Bolster Rail

Wednesday, 28 Nov 2012 01:31 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Siemens AG, the German maker of high-speed trains, agreed to buy Invensys Plc’s rail unit for 1.74 billion pounds ($2.78 billion) to bolster its signaling subsidiary and help the U.K. company cut its pension deficit.

The companies plan to complete the transaction in the second quarter of next year, pending approval from Invensys shareholders and some regulatory backing, Invensys said in a statement, after Bloomberg News reported that the companies were in talks about a transaction.

Invensys said it decided to sell the asset because it had “limited scope” to expand the business and a sale would leave the company more focused on areas such as industrial software. Siemens also said that it would sell its baggage-handling operations, following through on Chief Executive Officer Peter Loescher’s pledge to synchronize purchases and disposals.

Invensys, based in London, jumped as much as 24 pence, or 11 percent, to 244 pence, before closing at 280 pence. Siemens rose as much as 72 cents to 79.15 euros in Frankfurt.

Invensys, the two-century-old company that makes software used to run the London Underground’s subway trains, gets half its revenue from its so-called operations-management unit, which sells technology to automate plants and industrial facilities and helps make them cheaper to run, data compiled by Bloomberg show. Siemens had been named in the past by analysts as a possible suitor for Invensys’s rail-signaling business.

Siemens is Germany’s largest maker of trains, and the business also includes a signaling business. The company held a supervisory board meeting today, where it also decided on a planned spin-off of its Osram lighting business.

The assets for disposal form parts of the Siemens mobility and logistics subsidiary within the infrastructures & cities division, which Loescher created to better address large urban clients. The business offers parcel automation, airport logistics and airfreight handling.

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved