Siemens Prepares Bid for Energy Company Dresser-Rand

According to the article “Siemens Prepares Bid for Energy Company Dresser-Rand”, Siemens, a German oil company, is preparing a multi-billion dollar offer for the U.S. oil industry equipment firm, Dresser-Rand. They are in competition with Sulzer, a Switzerland based rival, who also wants to buy Dresser-Rand. Siemens offered more than $6billion. Siemen’s Chief Executive, Joe Kaiser, wants to purchase Dresser-Rand to beef up his presence in the U.S. energy market and capitalize on the shale boom. Siemens produces equipment for companies to extract gas, which is what Dresser-Rand does as well. The acquisition of Dresser-Rand would increase profit of Siemens by infiltrating the U.S. market. They want to come to the U.S. because of Germany’s strict controls over shale-gas exploration.

            If Siemens can purchase Dresser-Rand they will have more of a presence in the U.S. market. They have been trying to come to the U.S. because of German’s restrictions and make profit from the U.S. market. This would create a greater supply of natural gas in the U.S. because of more equipment to access natural gas. Siemens also bought Rolls-Royce holdings, a British turbine maker. Siemens is engaging in a good amount of international business.

I was wondering what you guys believe the implications of Dresser-Rand being bought will be?

http://online.wsj.com/articles/siemens-prepares-bid-for-energy-company-dresser-rand-1411132523