Siemens in takeover of Invensys Rail
Siemens is to take over the rail business of UK firm Invensys for over £1.74 billion.
Posted by David Gleck
German technology firm Siemens has agreed a deal to acquire the rail business owned by UK company Invensys.
Business negotiations between the two concluded in an agreement that will see Siemens purchase the rail division for £1.742 billion, with £625 million being used to close the gap in its company pension schemes.
As a class 1 transaction under Financial Service Authority listing rules, Invensys noted the process of transferring the asset is subject to "certain anti-trust consents", as well as the approval of shareholders, the UK pensions regulator and its lending banks.
Provided these hurdles are negotiated, the Siemens acquisition should be completed in the second quarter of 2013.
Invensys said the move would also help it focus more on its industrial software, systems and control equipment business from now on.
Speaking on behalf of Siemens, chief executive of the firm's mobility and logistics division Sami Atiya said: "With the addition of Invensys Rail we are in an excellent position to offer best-in-class solutions and technology to rail operators worldwide."