Siemens buys Invensys rail automation arm
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FRANKFURT, Nov 28 AFP
November 29 2012, 08:12AM
German industrial giant Siemens says it has reached an agreement to buy Invensys Rail from the British technology company Invensys for about 2.2 billion euros ($A2.75 billion).
Siemens on Wednesday also announced it planned to divest its baggage handling, postal and parcel sorting activities.
"Today's moves are important measures to focus our core activities," Roland Busch, chief executive of Siemens Infrastructure & Cities said in a written statement.
"We are exiting a non-core business with limited synergy potential while strengthening a resilient and high-return business by combining two organisations with similar cultures and attractive synergy potential," he added.
Invensys Rail, which has revenues of about 991 million euros ($A1.24 billion), was a leading software based rail signalling and control company and would expand Siemens' presence in the growing global rail automation market, it added.
The deal was subject to approval by Invensys shareholders and regulatory clearances, Siemens said.
Siemens said at the start of the month it planned to strengthen the core business of its four branches of activity - energy, health, industry and infrastructure.
Earlier Wednesday, Siemens said it would spin off 80.5 per cent of its lighting unit Osram with a view to proceeding with the long-planned stock market listing of the subsidiary later.