Industrial conglomerate Siemens AG said on Monday it would purchase U.S. oilfield equipment maker Dresser-Rand Group Inc for $7.6 billion in a move that would significantly boost the German company's oil and gas business in North America.Germany's Siemens said its $83 per-share bid was unanimously supported by Dresser-Rand's board of directors. That compares with a Friday closing price of $79.91, which was up 27 percent over the past three months on takeover speculation.Within minutes of that statement, it also announced the sale of its 50 percent stake in BSH Bosch und Siemens Hausgeraete GmbH to joint venture partner Robert Bosch GmbH for 3 billion euros ($3.85 billion), ending their more than 45 year alliance in household appliances."As the premium brand in the global energy infrastructure markets, Dresser-Rand is a perfect fit for the Siemens portfolio. The combined activities will create a world-class provider for the growing oil and gas markets," Siemens Chief Executive Joe Kaeser said in a statement on Monday.
Dresser-Rand Group Inc. is a global supplier of of custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power generation, military and other industries worldwide. Shares of DRC traded higher by 9.42% or $6.88/share to $79.91. In the past year, the shares have traded as low as $51.46 and as high as $82.50. On average, 1507510 shares of DRC exchange hands on a given day and today's volume is recorded at 12195438.
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