Siemens is to transfer its 59% stake in Siemens Gamesa to the former company’s Gas and Power business unit, which, in turn, will be spun off to operate independently as a publicly listed entity by September 2020.
The German giant will also give up its majority interest in Gas and Power, which currently comprises oil and gas, conventional power generation, transmission and related services.
However, Siemens said it intends to hold a stake in the new company that is below 50% but above the level of a blocking minority holding.
The company added that is will also support the new energy entity through Siemens’ Financial Services, the sales network of Siemens Regions and the licensing of the Siemens brand.
A decision on the spin off and public listing will be made at an extraordinary shareholders’ meeting, probably in June 2020.
Siemens said it will then deconsolidate both the new Gas and Power and Siemens Gamesa entity.
It added that the new energy company would have business volume of €30bn and have over 30,000 employees.
Siemens chief executive Joe Kaeser said: “This move will create a powerful pure play in the energy and electricity sector with a unique, integrated setup – an enterprise that encompasses the entire scope of the energy market like no other company.
“Combining our portfolio for conventional power generation with power supply from renewable energies will enable us to fully meet customer demand.
“It will also allow us to provide an optimised and, when necessary, combined range of offerings from a single source.
“We’re convinced that this strategic decision will be positive for all participants and enable long-term value creation for customers, employees and shareholders.”
Siemens Gas and Power chief executive Lisa Davis said: “Being independent will enable us to more effectively leverage our position of strength to further support our customers in rapidly changing energy markets.
“Global electrification continues to be vital to economic and environmental progress around the world, and as the only company with a leading portfolio along the entire energy value chain – in both conventional and renewable energy – we are uniquely able to help both public- and private-sector customers benefit from these developments.
“We’ll now have more freedom and agility to be able to concentrate fully on the highly specific and quickly changing requirements of our markets and customers.
“In addition, we’ll be able to more directly control our costs and ensure that our stakeholders benefit directly from every euro we spend.”