https://www.barrons.com/.../siemens-is-spinning-off-its-power-unit-ge-merger-5
3 replies (most recent on top)
It is likely GE will be forced to spin off all of Power, excluding Gas Power. Best way is via a reverse Morris trust like the Transportation sale.
The only question is if Japan wants Nuclear to help clean up Fukashima along with other businesses especially if China and others start playing hardball with Japan and the US.
A very rough estimate based on reported segment sales gives a combined Siemens and GE power unit more than 70% of the market.
That would set off alarm bells for antitrust regulators around the globe.
But the deal could be possible if regulators are willing to define the power-generation business more broadly. Fossil-fuel power generation is losing out to renewable, distributed power generation. That’s the big reason Siemens’s and General Electric’s power revenues are falling.
According to the Energy Information Administration, 64% of U.S. power comes from fossil-fuel sources and 17% is generated by renewable sources. Ten years ago, those numbers were 71% and 10%, respectively. Renewable energy generation has become much larger than fossil-fuel power generation in terms of the new capacity being installed.
You're in a dying business.
Let's buy Siemens Power for $10B and finish the deal once and for all!