SIE Siemens N Ord

RNS No 4334n
SIEMENS AG
14th November 1997

Siemens acquires Westinghouse's fossil power plant business fur US$1.5 billion.

Siemens acquires Westinghouse's operations in the field of fossil-fueled power
plants. An agreement to this effect between the two companies was announced
today. It stil requires the approval of the anti-trust authorities. The subject
of the agreement is the Power Generation Business Unit of the Industries &
Technology Group of Westinghouse, which has a work force of around 8,000 and is
active in the international markets for gas turbine, combined-cycle and steam
power plants for public, private and industrial power producers, above all in
countries with a grid frequency of 60 Hertz. The acquisition means that Siemens
will be able to serve the worldwide power plant market even more intensely than
before. The parties agreed upon a price of US$1.525 billion.

"The unrelenting fierceness of competition in the power plant market and the
dramatic changes in the power sector in the direction of privatization and
deregulation are presenting us with new challenges worldwide. By merging the
resources, the experience base and the technologies of Siemens and Westinghouse
in the field of fossil power generation, and by supplementing our global
presence, we will be serving our customers even better with more favorably
priced leading-edge products and comprehensive services", were the words of
Adolf Huttl, Member of the Siemens Board and KWU President, commenting on the
announcement.

Westinghouse Electric was founded by George Westinghouse in 1886, with power
plant engineering as one of the focal areas of the company's operations. In
1996, the Power Generation Business Unit headquartered in Orlando, Florida,
booked sales totaling around DM3.7 billion (US$2.2 billion).

Siemens/KWU is one of the world's leading power plant suppliers and booked sales
totaling DM9.5 billion in the past fiscal year 1996/97. Of this figure business
with fossil-fueled power plants, with a work force of around 11,800, accounted
for about DM5.4 billion. Siemens/KWU is represented in the U.S. by Siemens Power
Corp. whose Fossil Division headquartered in Milwaukee, Wisconsin, has a work
force of 800 and posts annual sales totaling around DM450 million.

END



ACQASUOKBOKAAAA

Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Jun 2024 to Jul 2024

Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Jul 2023 to Jul 2024