Siemens in Austria will acquire Victory lndustriebeteiligung AG, which, directly and indirectly, holds a 16% stake in VA Technologie AG (VA Tech).

Siemens will participate in VA Tech’s capital increase, expected in late November. It has also informed the Austrian takeover panel of its plan to submit a voluntary takeover bid for all VA Tech outstanding shares. VA Tech president and CEO Heinrich Pierer has described the offer price of €55 per share as “very fair”.

Siemens will integrate the company into its own organisation. Combining VA Tech’s business activities with those of Siemens is seen by both companies as being advantageous to customers, employees and shareholders. These advantages are expected to be particularly telling in the growth markets of central and eastern Europe, the Middle East and Asia.

VA Tech’s annual sales of €3.9 billion and its 17500 employees make it one of Austria’s largest technology companies and service providers. It is a significant international player in hydropower generation equipment, power transmission and generation, and infrastructure systems.

The offer will be subject to internal and regulatory approvals and will have to consider the terms of the existing Voith-Siemens Hydro joint venture.