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Siemens has moved to expand its oil and gas and decentralized power generation portfolio by agreeing to acquire Rolls-Royce Energy‘s gas turbine and compressor business for $1.3 billion.
The companies intend to complete the deal by December and the transaction includes Rolls-Royce’s 2,500 aero-derivative gas turbines, which generated estimated revenues of $1.5 billion in Rolls-Royce’s 2013 fiscal year, Siemens said Tuesday.
Rolls-Royce built the gas turbines with a compact construction, to provide emergency power reserves and support power grids during peak times.
Siemens will also pay Rolls-Royce approximately $339 million for a 25-year deal that covers exclusive access to selected aero-turbine technologies and preferred access to supply and engineering services.
