CORPORATE NEWS:
Siemens gains control of VAI
“Together for even greater performance
in iron, steel and aluminium” reads the headline on both companies’ websites.
The industrial giant Siemens AG has succeeded in its ambition to control
Voest-Alpine Industrieanlagenbau (VAI) following the European Antitrust Commission’s approval of the acquisition on 13th July. As part of the decision, Siemens must sell VA Tech Hydropower as this came too close to creating a monopoly situation in this area.
VAI will be integrated in the Siemens Industrial Solutions and Services Group (I&S;). “In combination with the existing metals business of this Group, we have created one of the strongest technological companies in the iron, steel and aluminium industry, bringing together the electrical and mechanical engineering sides of the business,” says Siemens.
The Siemens statement continues: “The two merging entities are well suited to each other.” However it was not a union sought by VAI’s management. When Siemens initially bid for the company it was offering Euros 55 per share and VAI advised its shareholders that this was
too cheap. The market then took over,
with the VAI share price rising to Euros 67 – when Siemens came back and offered Euros 65 per share, just over 97%
of shareholders agreed and deal was struck, subject to the approval of the competition authorities.
“The overall strategic goals have been reached with the takeover of VA Tech,” says Dr Klaus Kleinfeld, Siemens
Chief Executive Officer, following the-Brussels-decision. “Our focus in this acquisition was on the metallurgy and power transmission and distribution businesses. In these areas, the VA Tech portfolio and regional presence are an outstanding fit for our Industrial Solutions and Services (I&S;) and Power Transmission and Distribution (PTD) Groups respectively, and support their global growth targets. In addition, our takeover of the infrastructure activities will considerably strengthen Siemens’ already solid market position in-Austria-and push the expansion of our business, such as in the dynamic markets of-Eastern Europe. The antitrust conditions met our expectations.”
“The Commission’s decision marks a milestone in the development of the Siemens Group in-Austria-and in the country’s overall industrial landscape,” asserts Albert Hochleitner, General Director of Siemens AG Österreich. “Siemens will be one of the biggest industrial companies in-Austria. The takeover formalities – which have taken almost one year – are thus coming to a close for the good of all parties. We will now work hard to implement the integration as quickly as possible.”
The infrastructure unit of VA Tech (comprising VA Tech Elin EBG and ai informatics), which largely operates in-Austria-and-Eastern Europe, will be merged with Siemens Österreich. The merger creates the largest Austrian provider of electrotechnical equipment, systems and services for industry, building and infrastructure, and for IT services. In 2004, VA Tech posted sales of nearly Euros 900 million with around 3,900 employees in this sector. With this merged business, Siemens Österreich can pursue an even more aggressive growth strategy in Central and-Southeast Europe.
Siemens will fully integrate the metallurgy business of VAI into its I&S; Group, headquartered in-Erlangen,-Germany.
VAI, which had sales of roughly Euros
1.2 billion in 2004 with about
3,400 employees, will operate as an I&S; Group Company with headquarters in-Linz,-Austria, under the name
Siemens VAI. This will make it one of the world’s leading providers for developing and constructing iron, steel and aluminium plants.
While VAI previously focused above all
on developing technical solutions for
the mechanical side of plant construction, I&S; concentrated on electrotechnical equipment. As a result of the merger, the mechanical and electrotechnical sides of the industry will be bundled for the first time in the hands of a single provider.
The power transmission and distribution unit (T&D;) of the Austrian company
will be incorporated into the Siemens Power Transmission and Distribution Group (PTD), which is headquartered in-Erlangen,-Germany. This will enable Siemens to further reinforce its position as one of the leading international companies in this sector and provide a solid basis for sustained growth.
PTD will merge T&D;’s entire business with switchgear, transformers and automation solutions into its own High Voltage, Transformers, Energy Automation and Services Divisions. VA Tech T&D; had sales of Euros 1.1 billion in 2004 and around 5,400 employees.
Following the closing, Siemens intends to initiate a squeeze-out procedure in order to buy out the remaining owners of VA Tech shares in scattered holdings and to undertake a delisting of VA Tech.
Company: |
Siemens AG |
Country: |
Germany |
Fax: |
+49 9131 72 50 74 |
Email: |
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Website: |
www.siemens.com/metals |