EU approves Siemens’s acquisition of Dresser-Rand

The European Commission approved Siemens's planned $7.6 billion acquisition of Dresser-Rand after deciding that the deal won't hamper competition in the oil-and-gas equipment market.

The European regulator ultimately decided that Siemens and Dresser-Rand don't on the whole compete in the same markets to supply small gas and steam turbines, the Brussels-based body said in an emailed statement on Monday.

"Today's decision proves that even after an in-depth analysis, the commission can unconditionally approve a merger if it does not have a negative effect on competition," competition commissioner Margrethe Vestager said in the statement.

Investors have criticised the price that Siemens chief executive Joe Kaeser is paying for Dresser-Rand after Brent crude fell about 37 per cent since the deal was agreed on September 22nd.

Mr Kaeser has said the deal is essential to improve the company’s equipment offering for the extraction of natural gas from hydraulic fracturing, or fracking. – (Bloomberg)