Siemens Buying Rolls-Royce Energy Business
US$1.33 billion deal includes share of Rolls Wood Group JV
The global profile of the energy gas turbine and compressor systems sectors will undergo a major change through a deal involving Rolls-Royce and Siemens.
On May 6, the two companies announced an agreement for Siemens to purchase the arm of the United Kingdom company that supplies aeroderivative gas turbines, compressor systems and related services to customers in the oil and gas and power generation sectors in a deal worth US$1.33 billion.
Upon completion of the sale, which is expected before the end of December, Rolls-Royce will receive a further US$339 million for a 25-year licensing agreement giving Siemens access to relevant Rolls-Royce aeroderivative technology for use in the 5300 to 114,000 hp (4 to 85 MW) power output gas turbine range.