Siemens is set to sell the hydro operation of VA tech to Allianz AG's Allianz Capital Partner, together with Austria's Soravia Group, local media reports.
Following European Commission approval of the merger between Siemens and VA Tech in July, Siemens announced that it would be putting the VA Tech hydropower group up for sale as part of the approvals process.
The companies have established project teams in order to prepare the sales process for the unit, which is being held and managed separately from the Siemens goup under the management of Dr. Franz Strohmer who has been named as Hold Separate Manager.
Siemens has also committed to ensure the continued long-term viability and competitiveness of the business during the divestiture process. Although dates for the divestiture have not been disclosed the alliance is understood to have made a bid of between €350-420 million for the hydro arm.