Siemens has announced that it will spin off its Gas and Power business unit as part of the company's Vision 2020+ strategy concept.
The new company, to be called Gas and Power (GP), will encompass the following Siemens current units: oil and gas, conventional power generation, power transmission and related services businesses. It will be given complete independence through a carveout and a subsequent public listing (spinoff). The listing will take place by September 2020. Siemens AG will give up its majority stake in GP while remaining an important shareholder, with a stake between just below 50% and above the level of a blocking minority holding. Siemens AG will also transfer to GP its current 59% stake in Siemens Gamesa Renewable Energy (SGRE).
The new company will have an estimated business volume of €30bn (US$33.5bn) and over 80,000 employees. The move will allow for Siemens to obtain €2.2bn (US$2.5bn) in savings through structural efficiency gains. Siemens' future core business will be Digital Industries (DI) and Smart Infrastructure (SI) Operating Companies which will be supplemented by company-wide technology and service units and the company's strategic majority stake in Siemens Healthineers.