Wed, Mar. 25, 2:10 PM
- European Union antitrust regulators have suspended their investigation into Siemens' (OTCPK:SIEGY -0.6%) $7.6B bid for Dresser-Rand (DRC -0.1%) while waiting for "important information" from the German company.
- Siemens says the deal is still on schedule and expects to close in the summer of 2015 or earlier, but says it cannot comment further on the EU's request.
- EU regulators have expressed concerns that the merged company would reduce competition in turbo compressors and drivers for trains.
Wed, Mar. 11, 7:46 AM
- EU antitrust regulators have extended their investigation into Siemens' (OTCPK:SIEGY) $7.6B proposed takeover of Dresser-Rand (NYSE:DRC), Reuters reports.
- The European Commission will now decide by July 14 instead of June 30 whether to clear the deal.
- Previously: European Commission to probe Siemens' proposed deal for Dresser-Rand (Feb. 13 2015)
Fri, Feb. 13, 11:42 AM
- The European Commission says it has opened an investigation to assess whether Siemens' (OTCPK:SIEGY +1.5%) proposed $7.6B acquisition of Dresser-Rand (DRC +0.1%) is in line with EU antitrust regulations.
- Siemens is seeking to reinforce its presence in the U.S. shale oil and gas industry through the deal; both companies supply turbo compressors as well as the engines which drive the compressors.
- The EC now has 90 working days, until June 19, to complete its probe.
Dec. 9, 2014, 4:43 AM
- Despite a decline in oil prices, Siemens (OTCPK:SIEGY) Chief Executive Joe Kaeser announces he would "not even think about walking away" from September's $7.6B Dresser-Rand (NYSE:DRC) deal.
- Siemens also see higher synergies from the Dresser-Rand purchase, and is now targeting 30% more savings from the acquisition. The group previously said it expected more than €150M in annual synergies by 2019.
- Previously: Siemens agrees to buy Dresser-Rand for $7.6B (Sep. 22 2014)
Sep. 22, 2014, 7:25 PM
- Siemens (OTCPK:SIEGY) lost out to GE for Alstom's gas turbine business earlier this year but has now acquired Dresser-Rand (NYSE:DRC), a major supplier of equipment such as compressors and gas turbines used to exploit shale resources.
- But Siemens is paying up for the privilege, writes Heard On The Street's Thao Hua, at more than 14x the consensus estimate for Dresser's 2015 EBITDA - higher than previous deals in the sector and far higher than Siemens' own multiple of ~9x.
- The rate of growth in the gas turbine sector is falling, estimated to hit a trough in 2015 by Siemens' own metrics; the company expects the market will heat up again at an assumed annual growth rate of 6%-8%, but that remains to be seen.
- In terms of synergies, Siemens' scale and wide reach present opportunities to raise DRC's margins and revenue growth, but expectations of €150M ($192M) of annual synergies isn't expected to be reached until 2019.
Sep. 22, 2014, 1:57 AM
- After much speculation, Siemens (OTCPK:SIEGY) has announced that it would buy Dresser-Rand (NYSE:DRC) for $7.6B, and says that its $83/share bid was unanimously supported by Dresser-Rand's board of directors.
- Siemens also announced the sale of its 50% stake of household goods joint venture BSH to partner Robert Bosch for €3B ($3.9B).
- Siemens expects to close the Dresser-Rand deal by summer 2015, while it aims to complete the sale of its BSH stake in the first half of 2015.
- Previously: Siemens close to acquiring Dresser-Rand for $6B
Sep. 21, 2014, 2:48 PM
- Siemens (OTCPK:SIEGY) is reportedly on the verge of a $6B all-cash deal to acquire U.S. oilfield equipment maker Dresser-Rand Group (NYSE:DRC).
- Siemens is expected to pay low- to mid-$80s per share. DRC closed Friday at $79.91, and is +18% since Wednesday over takeover speculation.
- Sources say the all-cash bid has trumped a competing offer from Sulzer AG (OTC:SULZF), which was looking to merge with Dresser-Rand in an all-stock deal.
- Discussions are continuing and could still fall apart.
Sep. 19, 2014, 5:21 PM
- The latest speculation over Dresser-Rand (NYSE:DRC) now includes GE, which Financial Times reports is holding talks with DRC management about a possible takeover and is deciding whether to launch a bid.
- If it does, it could be the second time GE has faced off against Siemens (OTCPK:SIEGY) over a multibillion-dollar deal in the past six months after competing over the takeover of the energy businesses of Alstom in June.
- Siemens reportedly is in talks with DRC about a ~$80/share offer, and Swiss industrial pump maker Sulzer (OTC:SULZF) has said it is in talks with the U.S. oilfield equipment manufacturer about a possible merger.
Sep. 19, 2014, 12:26 PM
- Renova, a holding company of Russian oligarch Victor Vekselberg, says it has bought a 4.99% stake in Dresser-Rand (DRC +10.2%), adding a twist to recent speculation on DRC's future.
- Renova also holds a 33.19% stake in Swiss pump maker Sulzer (OTC:SULZF), which said earlier this week it was in talks with the U.S. company about a potential deal.
- A new report says Siemens (OTCPK:SIEGY) is preparing a $6B-plus offer for DRC.
- Meanwhile, DRC is downgraded to Sell at Gabelli, which says shares have run up too far on the M&A talk; also, a potential antitrust review, while likely not an obstacle, could mean a deal close would be 6-9 months out.
Sep. 19, 2014, 6:50 AM
- Siemens (OTCPK:SIEGY) is planning to offer more than $6.1B, or $80/share, for Dresser-Rand (NYSE:DRC), Reuters reports quoting Germany's Manager Magazin.
- Siemens' move could trigger a bidding war with Sulzer (OTC:SULZF), which announced on Wednesday that it is in advanced talks for a merger with the compressor and turbine maker.
- DRC +4.1% premarket
Sep. 18, 2014, 9:12 AM
- Dresser-Rand (NYSE:DRC) +1.5% premarket after William Blair says the company could be valued at $80-$100/share in an M&A deal with limited downside.
- Blair cites an increasing likelihood of a merger transaction after Sulzer confirmed yesterday that it is in talks to acquire DRC; the firm keeps its Outperform rating on the stock while raising its price target to $82 from $70.
- Meanwhile, Gabelli continues to believe DRC has an asking price somewhere above $80 to be acquired by Siemens (OTCPK:SIEGY).
Sep. 17, 2014, 12:10 PM
- Dresser-Rand (DRC +8.6%) spikes after Swiss pump maker Sulzer (OTC:SULZF) says it is in advanced discussions about a merger with the U.S. oilfield equipment maker.
- Sulzer's statement followed a report by a Swiss newspaper which said the two companies could announce a merger as soon as next month.
- A report last month said DRC was working with Morgan Stanley to prepare for possible takeover bids.
Jul. 17, 2014, 3:58 PM
- Dresser-Rand (DRC +12.5%) maintains strong gains following a report overnight that Siemens (OTCPK:SIEGY -1.9%) is preparing an offer to buy out the oilfield equipment maker and has opened up talks following its unsuccessful bid to buy Alstom’s energy assets earlier this year.
- Siemens has “huge” firepower to pursue deals toward expanding its energy assets, CEO Joe Kaeser had said after coming up short on Alstom.
- “Strategically it would be a good fit, it would fill some gaps in the portfolio and improve Siemens's position in North America,” Commerzbank analysts say.
- Shares have held up despite some notes of caution throughout the day; DRC s not viewed as a “motivated” seller now, a J.P. Morgan analyst says, and Raymond James believes a takeover is unlikely.
Jul. 17, 2014, 7:08 AM
- Siemens (OTCPK:SIEGY) is looking to acquire Dresser-Rand (NYSE:DRC), German Manager Magazin reported this morning.
- The report also states that Siemens has prompted Lazard to form the offer to extend to the turbine maker, and would consider a hostile takeover if necessary.
- Dresser-Rand has a current market value of $4.6B.
Sep. 6, 2013, 4:58 PM
- GE's growing interest in oil and gas assets and a decade-high $19.3B cash stockpile are turning Dresser-Rand (DRC) and Dril-Quip (DRQ) into potential takeover targets, analysts say.
- DRQ is projected to boost sales by 63% in the next three years, faster than all but two similar-sized U.S. peers, and analysts see DRC expanding 51%, according to data compiled by Bloomberg.
- DRQ, with visible multi-year growth in front of it, "is always at the top of the list of companies that are talked about as a consolidation target,” a Lazard Capital analyst says, but a deal with GE might be viewed by regulators as anti-competitive.
May. 7, 2013, 10:54 AMDresser-Rand (DRC +3.8%) is turning into a takeover target for potential buyers such as Siemens (SI), National Oilwell Varco (NOV) and Cameron (CAM), Bloomberg writes. GE’s decision to buy Lufkin this year at the highest multiple to profit on record signaled an appetite for takeovers in the oilfield equipment industry, and DRC could be next on the list as the number of takeout candidates in the space diminishes. | 1 Comment
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Dresser-Rand Group Inc is a supplier of custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power generation, military and other industries in various countries.
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