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Construction : Deals | December 2012 | Source : Construction Update

Siemens to buy Invensy's rail biz for €2.2 bn

Siemens to buy the rail automation business of Invensys for €2.2 billion (£1.74 billion). And the company has entered into an agreement with Invensys Rail in this regard. At the same time, the company plans to divest its baggage handling, postal and parcel sorting activities.

Both transactions are part of the recently launched ‘Siemens 2014’ company programme, aimed at strengthening the company’s core activities. With revenues of about £800 million, Invensys Rail is a leading software-based rail signalling and control company.

The acquisition will expand Siemens’ presence in the growing global rail automation market.

Roland Busch, Chief Executive Officer of Siemens Infrastructure & Cities said that the company is exiting a non-core business with limited synergy potential while strengthening a resilient and high return business by combining two organisations with similar cultures and attractive synergy potential. The transaction is subject to Invensys shareholder approval and regulatory clearance.

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