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Mitsubishi Eyes Tie-Up With Siemens Turbine Unit After Spinoff

Richard Clough

(Bloomberg) -- Mitsubishi Heavy Industries Ltd. would consider a tie-up with Siemens AG’s energy operations following a planned spinoff of the German business.

“We do have a good relationship with Siemens,” Mitsubishi Chief Executive Officer Seiji Izumisawa said Wednesday in an interview at Bloomberg’s New York headquarters. “When the spinoff happens, I will not deny the possibility that we could possibly work with them if that does present itself as an opportunity.”

The Japanese manufacturer is looking to bolster its standing as one of the world’s top producers of large gas turbines as the market starts to recover from a steep downturn. Mitsubishi Heavy had held talks about a possible combination with Siemens’s power business before the decision was made to spin it off, Bloomberg reported in March.

While Mitsubishi is taking a “cautious” approach to mergers and acquisitions while global volatility weighs on order volume, Izumisawa didn’t rule out a purchase as one option he would consider. “That would depend upon what kind of assets the spinoff actually had, and what kind of a combination or collaboration could be achieved,” he said through a translator.

To contact the reporter on this story: Richard Clough in New York at rclough9@bloomberg.net

To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Tony Robinson, Susan Warren

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