Multinational engineering and electronics company Siemens is about to seal the deal to acquire Oil giant Dresser-Rand Group, Inc.
The total dollar market value of Dresser-Rand amounts to $6 billion. The deal is reported to happen on Monday, according to CNBC.
Siemens is reported to shell out more than $80 per Dresser-Rand share, against Dresser-Rand's Friday closing price of $79.91.
Shares of Dresser-Rand jumped the past days following rumors of the merger with Siemens.
Siemens talked with Dresser-Rand on close doors as the deal is still in its works and can still be nulled.
Both companies stayed mum about the deal and insisted that the deal is not made to be public.
Another company reported to have offered Dresser-Rand a merger include Swiss industrial engineering and manufacturing firm Sulzer.
Sulzer proposed to buy all of Dresser-Rand's outstanding shares from its shareholders for cash in an "all-stock" offer.
However, Siemens bested the offer of the Swiss manufacturer with its all-cash bid.
Siemens makes gas turbines and supplies equipment for companies that extract natural gas. Acquiring Dresser-Rand, which makes compressors, turbines and other rotating equipment, would amplify the company's capacity to extract gas and oil as the demand for energy experienced a sudden increase in the U.S.
With the merger, Siemens would also be able to use Dresser-Rand's lucrative spare parts business.
According to analysts, Siemens would experience a boom in their revenues following the acquisition of Dresser-Rand's profitable spare parts business.
On the other hand, Dresser-Rand would also benefit from the merger as there is an increasing demand for oil compressors following the expansion of the U.S. energy industry.
The Germany-based engineering and electronics company is Europe's largest engineering company.
Siemens also manufactures medical diagnostics equipment, which generate 12 percent of the company's total sales.
Dresser-Rand produces oil pumps equipment, rotating equipment, components and services for separation columns and static mixing.
