Following final negotiations, Siemens Austria and Andritz AG have signed the contract for the purchase of VA Tech Hydro, with the acquisition expected to become effective at the end of May 2006. The purchase price has not been disclosed.
In the course of the approval procedure for Siemen’s Austria’s acquisition of VA Tech, the European Union, under its anti-trust regulations, had imposed the obligation on Siemens to sell VA Tech Hydro.
In February 2006, Siemens had decided to hold final negotiations with Andritz which were successfully concluded under close observation of the European anti-trust authorities. According to a statement, the decision in favour of Andritz was based on three criteria: Andritz presented an attractive overall package; the stipulations of the EU antitrust authorities were fulfilled; and a convincing strategic concept was submitted for VA Tech Hydro’s production site in Weiz.
The acquisition is still subject to approval by antitrust authorities.