Having obtained all regulatory approvals, the company hopes to complete the transaction by the end of this month.
European Union competition commissioner Margrethe Vestager said: "After a detailed assessment of the markets involved, the Commission is satisfied that European consumers will not be negatively affected by the merger."
As part of the deal, Siemens will pay $85.20 per share to all Dresser-Rand shareholders.
Upon completion of the transaction, Siemens will operate Dresser-Rand as its oil and gas business within Siemens Power and Gas Division. The new Dresser-Rand unit will focus primarily on the oil and gas industry.
Siemens managing board member Lisa Davis said "With Dresser-Rand on board, we now have a comprehensive portfolio of equipment and capability for the oil and gas industry and a much expanded installed base, allowing us to address the needs of the market with world-class products, solutions and services.
"So despite the challenges of a low oil price, this also brings opportunities as we focus our efforts on offers that reduce costs and increase efficiency."
Through the initial integration phase, the business will be led by Dresser-Rand’s current CEO, Vincent Volpe.
Siemens expects the Dresser-Rand integration by 2019 to provide about €200m synergies annually.
