Siemens ready to spend billions on takeovers
The Local · 14 Feb 2011, 12:05
Published: 14 Feb 2011 12:05 GMT+01:00
“When we talk about larger acquisitions, we mean significant sums of up to several billion euros,” Chief Financial Officer Joe Kaeser said in an interview with the business daily.
He added that the company, Europe’s largest engineering group by sales, had reached a level of “management maturity” that enabled it to pursue significant takeovers.
The company will focus on an expansion of its power network segment as well as looking at new techniques for energy efficiency and automation. “This is where our focus will be – strategically and operationally, also in terms of takeovers and when it comes to research and development,” Kaeser said.
The new direction is a major shift from the company’s previous strategy, which was concentrated on restructuring, expanding margins and internal growth. It illustrates how companies in Europe and the United States are looking for ways to spend the cash they have accumulated since last year’s economic recovery.
The report said Siemens has about €15.6 billion in acquisition money to spend and a company source told the Financial Times Deutschland that its war chest was “filled to the brim.”