SIEGY - Siemens Aktiengesellschaft

Other OTC - Other OTC Delayed Price. Currency in USD
55.75
+0.68 (+1.23%)
At close: 3:59PM EDT
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Previous Close55.07
Open55.51
Bid0.00 x 0
Ask0.00 x 0
Day's Range55.31 - 55.81
52 Week Range46.85 - 60.75
Volume89,555
Avg. Volume223,060
Market Cap89.919B
Beta (3Y Monthly)0.91
PE Ratio (TTM)13.65
EPS (TTM)4.08
Earnings DateN/A
Forward Dividend & Yield2.17 (3.90%)
Ex-Dividend Date2019-01-31
1y Target Est105.11
Trade prices are not sourced from all markets
  • The Next-Gen Economy: Siemens' Barbara Humpton, Deloitte's Joe Ucuzoglu and NYU Prof. Michael North
    Yahoo Finance Video

    The Next-Gen Economy: Siemens' Barbara Humpton, Deloitte's Joe Ucuzoglu and NYU Prof. Michael North

    Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO at Yahoo Finance All Markets Summit: Generational Opportunities.

  • Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO talk 'ownership culture' mindset
    Yahoo Finance Video

    Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO talk 'ownership culture' mindset

    Barbara Humpton, Siemens U.S. CEO discusses 'shared value that creates foundation' for workers; Joe Ucuzoglu, Deloitte U.S. CEO says protecting an 'iconic brand' is integral to making workers feel invested in the company.

  • Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO discuss how skills gap will get closed
    Yahoo Finance Video

    Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO discuss how skills gap will get closed

    Joe Ucuzoglu, Deloitte U.S. CEO on what workers want: 'How are you going to invest in me?' What are companies doing to invest in communities?

  • Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO on the worker skills gap
    Yahoo Finance Video

    Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO on the worker skills gap

    Joe Ucuzoglu, Deloitte U.S. CEO: 'What you're seeing is an evolution. Every job has tech savviness.' Barbara Humpton, Siemens U.S. CEO says skills gap is 'real, and the jobs need is urgent' but how can we make tech more accessible?

  • Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO on the generational divide in the workforce
    Yahoo Finance Video

    Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO on the generational divide in the workforce

    Barbara Humpton, Siemens U.S. CEO; Joe Ucuzoglu, Deloitte U.S. CEO talk about integrating millennials with more experienced workers. Combining know-how with current knowledge. 'We're all about multigenerational workers', Humpton says.

  • Deloitte U.S. CEO Joe Ucuzoglu on economy: 'On balance, we're pretty bullish
    Yahoo Finance Video

    Deloitte U.S. CEO Joe Ucuzoglu on economy: 'On balance, we're pretty bullish

    Barbara Humpton, Siemens U.S. CEO: 'We're concerned...but there has not been a better time to transform.' Joe Ucuzoglu, Deloitte U.S. CEO says economy slowing, but 'huge pockets of strength driven by digital transformation. On balance, we're pretty bullish'."

  • Reuters

    UPDATE 1-Brazil awards contracts for 2.98 gigawatts of new power projects

    The Brazilian government awarded on Friday contracts for companies to build new power generation installations with combined capacity of 2.98 gigawatts, that will cost about 11.16 billion reais ($2.71 billion) to be built. According to the power trading chamber CCEE, the new plants, which will need to be operational in six years, will sell energy for an average price of 176 reais per megawatt, a 33% discount over the initial price at the auction. France's Voltalia, Norway's Statkraft and Brazil's Eneva are among the winning bidders.

  • Should We Be Delighted With Siemens Aktiengesellschaft's (ETR:SIE) ROE Of 10%?
    Simply Wall St.

    Should We Be Delighted With Siemens Aktiengesellschaft's (ETR:SIE) ROE Of 10%?

    Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...

  • SAP’s an Old Company With New Tricks in Battle to Dominate Cloud
    Bloomberg

    SAP’s an Old Company With New Tricks in Battle to Dominate Cloud

    (Bloomberg) -- SAP SE is sticking to its new plan of keeping the company youthful, and top management isn’t being spared.The storied German software giant, Europe’s biggest tech company by market value, has spent the past few years attempting to reinvent itself. It’s working to adapt its corporate software, used by almost all of the world’s 100 most valuable brands, to the web and is taking on younger rivals in cloud-based computing.There’s also been an exodus of company veterans, which as of 12:44 a.m. Friday in Walldorf, included CEO Bill McDermott.Analysts have called the late-night news a surprise; McDermott’s contract doesn’t run out until 2021. He also unveiled a major restructuring plan in April and was expected to brief investors on the company’s strategy next month.But, as he said on a conference call after the announcement, “Ten years is a long time to be CEO.”McDermott, 58, had been with the company since 2002 when he joined as head of its North American business. At the time, he was that unit’s fourth head in three years as SAP struggled to compete with rivals like Oracle Corp., and grappled with a drop in sales of software licenses. Problems with its products were blamed for delayed shipments of Whirlpool Corp.’s appliances and even Hershey’s Halloween chocolates.In the role, he recruited a new management team, changed the way the sales department targeted customers, and ultimately boosted sales growth. When CEO Leo Apotheker unexpectedly resigned in 2010, McDermott and product-development head Jim Snabe were picked to replace him as co-CEOs. Snabe -- currently chairman of Siemens AG -- stepped down and took a spot on the board in 2014, and McDermott became sole head of the company.With nearly 100,000 employees and a sprawling business that generated about $27 billion in revenue last year, driving change has sometimes been controversial. Since 2011, McDermott spent $26 billion on six major cloud acquisitions, and was the main advocate for the $8 billion acquisition of Qualtrics International Inc., the company’s largest-ever deal.Analysts criticized the purchase as too expensive. In November, Qualtrics said it expected revenue for 2018 to exceed $400 million, a figure that wouldn’t move the needle much for SAP. McDermott defended the deal, believing that combining SAP’s sales force and a trove of operational data with Qualtrics’s customer experience feedback would accelerate growth.More recently, the company attracted the interest of activists at Elliott Management Corp., which revealed its 1.2 billion-euro ($1.3 billion) stake when SAP announced a change in strategy in April. SAP had been vague at the time, saying it planned “new initiatives to accelerate operational excellence and value creation” with a focus on “tuck-in” acquisitions.SAP underwent a management shakeup in the weeks preceding the April announcement. The president of its cloud business, 27-year SAP veteran Robert Enslin, had announced his departure earlier that month. It was later revealed he’d left for Google. A day earlier, Chief Technology Officer Bjoern Goerke, another cloud expert based in the U.S., penned a blog post saying he was leaving the company he joined as a student in 1988. Board member Bernd Leukert, a seasoned IT executive, left SAP in February.Personally, McDermott also had to weather a near-fatal accident in 2015 that cost him an eye when he fell down some stairs while carrying a water glass and nearly bled to death.His replacements are a mix of old and new guard at SAP. Christian Klein, 39, spent the past 20 years at SAP, after joining as a student in 1999. Jennifer Morgan, 48, arrived in 2004 and was the first American woman on the company’s executive board. Morgan has been seen as McDermott’s protege, rising relatively quickly through the ranks, and most recently served as the president of the all-important cloud group.Together, Klein and Morgan will have to find a way to compete with younger companies like Salesforce.com Inc. and Workday Inc. while encumbered by a traditional enterprise software business.Cloud is the company’s clear growth engine, with revenue increasing about 32% last year to about 5 billion euros. Sales from its largest business, which helps clients set up and implement SAP’s software, grew less than 1% in 2019.McDermott’s resignation was announced alongside better-than-expected preliminary third-quarter earnings results. New bookings for the company’s cloud products, a key metric that indicates future sales, grew 33% on a constant-currency business. That was more than double the pace set in the second quarter, when disappointed investors sent shares down as much as 10%.“While it is a shock to see Mr. McDermott stepping down, he is clearly handing over the reins of the business from a position of strength and we are encouraged to see that his replacements are long-term members of the SAP executive team,” said Thomas Fitzgerald, fund manager at SAP shareholder Edentree Investment Management, in a note on Friday.\--With assistance from Stefan Nicola.To contact the reporters on this story: Amy Thomson in London at athomson6@bloomberg.net;Kit Rees in London at krees1@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Is GE Stock A Buy Right Now? Here's What Earnings, Chart Say
    Investor's Business Daily

    Is GE Stock A Buy Right Now? Here's What Earnings, Chart Say

    General Electric is making major changes after a brutal couple of years. Here is what the fundamentals and technical analysis say about buying GE stock now.

  • Osram Takeover Battle Set for Next Round After AMS Bid Setback
    Bloomberg

    Osram Takeover Battle Set for Next Round After AMS Bid Setback

    (Bloomberg) -- The battle for control of Osram Licht AG is set to enter a new round after Austria’s AMS AG vowed to keep fighting after a sweetened 4 billion euro ($4.4 billion) offer failed.AMS, a supplier to Apple Inc., will seek a regulator nod to raise its 19.99% stake in Osram. As the biggest shareholder in the German lighting maker, AMS’s approval has become key for any would-be rival bidder. Osram has said private equity investors Bain Capital and Advent International are inspecting its books with a plan to make an offer.“We doubt private equity will launch a superior bid given AMS has built up a 19.99% stake in the meantime,” Commerzbank said in a note. “While we cannot rule out that AMS might make another push, timing is yet unclear, so we attach a greater likelihood to a potential cooperation only.”German takeover law doesn’t allow a new bid within one year unless the target gives its consent, as well as stipulating that an offer needs to be made if an investor crosses a 30% ownership threshold. AMS’s pursuit took a setback Friday, when it announced its offer failed to attract enough support from shareholders. Osram investors had tendered only 51.6% of their shares, short of a 62.5% threshold.Osram fell as much as 4.5% to 39 euros, the most in two months, while shares of AMS declined as much as 5.8%.AMS’s failed bid extends a period of protracted uncertainty for Osram, which emerged as a takeover target last year after warning trade friction and a cooling of the car industry had clouded the outlook for 2019. The former division of Siemens AG gets about half of its revenue from the automotive sector. Subsequent profit warnings further eroded investor confidence, sending shares tumbling until the takeover battle took hold.Osram confirmed talks with Bain and Carlyle, which was later replaced by Advent, in February after they were first reported by Bloomberg News. A bidding war broke out in July when AMS lobbed a higher offer. The Austrian company has drawn criticism from Osram unions and employee representatives on the board, as well as management due to concerns about promised synergies as well as the deal’s financing.Following the months-long takeover battle against private equity suitors, AMS said the combination remains compelling and pledged to continue to “explore strategic options” for a takeover. Bain and Advent are inspecting Osram’s books “with a view to submitting an offer,” Osram said in a separate statement.AMS, a supplier of facial recognition technology for Apple’s iPhone, has said it would invest in the company’s Regensburg, Germany site that makes high-tech chip components, but would sell the digital division that makes lighting controls, stage and theater lights.Century-old Osram, based in Munich, started out making light bulbs, pivoting in recent years under Chief Executive Officer Olaf Berlien to products like iris scanners and infrared emitters. The refocus was contentious, leading to a boardroom clash over strategy and a public spat with Siemens before the German engineering giant sold down its stake.To contact the reporter on this story: Oliver Sachgau in Munich at osachgau@bloomberg.netTo contact the editors responsible for this story: Tara Patel at tpatel2@bloomberg.net, Elisabeth Behrmann, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Moody's

    Babilonia Holding S.A. -- Moody's confirms Babilonia's Ba2/Aa1.br ratings; outlook stable

    Moody's América Latina Ltda., ("Moody's") has today confirmed the Ba2 global scale and Aa1.br national scale ratings assigned to Babilonia Holding S.A.'s ("Babilonia", the "project" or the "issuer") BRL87 million senior secured debentures due in 2033. The outlook for the ratings is now stable. The ratings' confirmation reflects Moody's perception that the potential change of control will not materially affect the project's underlying credit fundamentals, despite the anticipated changes in the debt guarantee structure and the different economic interests and financial profile of the new sponsor.

  • Siemens and Deerfield Beach, Fla., Are Making a Smart City Vision Real
    Business Wire

    Siemens and Deerfield Beach, Fla., Are Making a Smart City Vision Real

    The City of Deerfield Beach, Fla., and Siemens today officially announced the start of a city-wide energy efficiency project to reduce the city’s environmental footprint. Last month, the Commission of Deerfield Beach approved a 17-year contract with Siemens for energy performance services.

  • Should You Investigate Siemens Aktiengesellschaft (ETR:SIE) At €96.63?
    Simply Wall St.

    Should You Investigate Siemens Aktiengesellschaft (ETR:SIE) At €96.63?

    Siemens Aktiengesellschaft (ETR:SIE) saw a double-digit share price rise of over 10% in the past couple of months on...

  • Berlin’s Take on a High-Tech ‘Smart City’ Could Be Different
    City Lab NonHosted

    Berlin’s Take on a High-Tech ‘Smart City’ Could Be Different

    The German company Siemens is launching an ambitious adaptive reuse project to revitalize its historic corporate campus, with a modern data-collecting twist.

  • Green Steel Needs a Huge New Source of Electricity in Europe
    Bloomberg

    Green Steel Needs a Huge New Source of Electricity in Europe

    (Bloomberg) -- Austria may need to boost its renewable power generation by 50% to meet demand from steelmakers seeking to replace fossil fuels with hydrogen.The finding emerged at a discussion this week convened by the country’s biggest utility, which is probing the enormous consequences for electricity and carbon markets of efforts to rein in global warming.Verbund AG estimates that producing hydrogen in the volumes needed to help cut industrial emissions could take an additional 30 terrawatt-hours of renewable electricity annually -- equivalent to some 20 times the output of the world’s biggest offshore wind farm.“We have the resources and technology,” Verbund AG Chief Executive Officer Wolfgang Anzengruber said at a briefing in Fuschl, Austria. “Now, we have to come to a point where it’s cheaper to cut carbon dioxide than it is to pay a penalty for its emission. The cost of not doing so will become significantly higher.”Verbund is spearheading Austria’s drive to turn the universe’s lightest element into fuel for its heaviest industry.Clean-burning hydrogen could replace coal and coke in mills that currently release about 1.7 tons of carbon dioxide for every ton of steel manufactured. The sector accounts for as much as 9% of global carbon emissions, according to the World Steel Association.“What we need are power-to-fuel plants that are above all electrolysis plants,” said Katharina Beumelburg, a senior vice president at Siemens AG’s gas and power division, who was at the meeting. “The most important input is cheap, green electricity.”Siemens and Verbund are jointly developing Europe’s biggest electrolyser at Voestalpine AG’s steel plant in Linz, Austria. By the end of this year, that 6-megawatt unit is scheduled to begin feeding hydrogen into blast furnaces as a reduction agent to remove oxygen from iron ore.The steel industry could adopt hydrogen for between 10% and 50% of output by mid-century given the right carbon pricing, BloombergNEF analysts wrote in a report last month. The London-based researcher sees hydrogen technology becoming competitive with high-cost, coal-based plants by 2030.“Hydrogen will continue to be a growth market,” said Timur Gul, who heads energy technology policy for the International Energy Agency and also attended the Austrian meeting. The element is already widely used by chemical and fertilizer makers and is poised to “break out” in other sectors, he said.Austrian politicians agreed on 540 million euro ($597 million) renewable energy package on Friday that will build out wind and solar generation, according to a statement. The country is also looking at converting excess renewable capacity into hydrogen. The underground reservoir Austria has identified could hold gas equivalent to 92 terrawatt-hours of power.Verbund’s Anzengruber said his utility probably wouldn’t need to cover all of the new electricity demands required for producing hydrogen on industrial scales.“It could be that we import hydrogen like we do with oil right now,” the CEO said. “It could be cheaper to produce elsewhere.”(Adds new funding, hydrogen storage in the 11th paragraph)To contact the reporter on this story: Jonathan Tirone in Vienna at jtirone@bloomberg.netTo contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, Rob VerdonckFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Osram Feeds Union Anger After Backing $4.1 Billion AMS Offer
    Bloomberg

    Osram Feeds Union Anger After Backing $4.1 Billion AMS Offer

    (Bloomberg) -- Osram Licht AG recommended a 3.7 billion-euro ($4.1 billion) takeover bid from AMS AG on the basis of price, risking a backlash from labor groups worried about potential job cuts that may come with the deal.The terms of AMS’s 38.50 euro-a share proposal eclipse Osram’s lingering concerns about how the takeover will be funded, the German lighting maker said in a statement on Monday. The Munich-based former Siemens AG unit had previously backed a lower offer from private equity groups Bain Capital and Carlyle Group LP.The show of support for AMS gives the Austrian sensor maker a boost in a months-long battle for Osram, which came into play after a series of profit warnings more than halved its share price over the course of a year. Bain and Carlyle are considering increasing their 3.4 billion-euro offer, people familiar with the matter said last month, which could switch the initiative back their way.Osram said differences remain with ASM over “some important strategic elements” that require further discussion, though that may not be enough to appease unions and employee representatives, who make up half of Osram’s supervisory board. They have questioned AMS’s planned savings from the deal, saying they would lead to job losses and facility closures in Germany.“The decision today was made against the wishes of the employee representatives,” said Johann Horn, leader of the IG Metall Bayern. “Even the management board is not convinced of the concept that AMS has tabled.”AMS Chief Executive Officer Alexander Everke defended his company’s credentials, saying its “commitments are the same if not better than that of Bain and Carlyle.” Osram shares traded 0.5% higher at 37.70 euros per share as of 10:24 a.m. in Frankfurt, while AMS declined as much as 4.9% in Zurich.Investor SupportMeetings between AMS and its investors across Europe, the U.S. and Asia over the last two weeks revealed “strong support” for its plan to buy Osram, AMS said in a separate statement on Monday. It reduced the minimum acceptance rate for its offer to 62.5% from 70%, though won’t be able to count on Osram CEO Olaf Berlien, who will not tender his personal stock.AMS shareholders still need to approve a capital raise to finance the transaction that will increase debt, but that “will be reduced to where it was before the deal within two years,” Everke said.The bidding war began in July, when AMS offered to counter a bid from Bain and Carlyle. AMS’s proposal was cleared last week by the country’s financial watchdog, allowing offers to remain open until Oct. 1.(Adds union comment in fifth paragraph. A previous version of this story corrected to say Osram recommended, not rejected, the offer by AMS.)To contact the reporter on this story: Oliver Sachgau in Munich at osachgau@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, John Bowker, Andrew NoëlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters

    Siemens, Orascom sign deal to rebuild Iraq power plant

    Siemens and Orascom Construction signed an agreement on Saturday with the Iraqi government to rebuild two power plants in the north of the country that will have a combined capacity of 1.6 gigawatts. Siemens said that work at the Baiji facility, 250 km (155 miles) north of Baghdad, will commence once Iraq's Council of Ministers approve the deal and a financial agreement is reached with the Finance Ministry. Iraq signed five-year "roadmap" agreements with GE and Siemens AG last October under which the country plans to spend about $14 billion on new plants, repairs, power lines and, eventually, equipment to capture for use natural gas that is now being flared off.

  • Siemens executive Sen favourite to lead new standalone energy business
    Reuters

    Siemens executive Sen favourite to lead new standalone energy business

    ZURICH/MUNICH (Reuters) - Siemens board member Michael Sen is the favourite to lead its new standalone energy business, sources have told Reuters, removing one of the frontrunners from the race to succeed Joe Kaeser as head of the German industrial company. Sen is in pole position when the supervisory board of the Munich-based company meets on Wednesday to decide who will lead the business it is spinning off and floating, two people familiar with the matter told Reuters. The move could clear the way for Siemens Chief Operating Officer Roland Busch to lead the trains to industrial software company when Chief Executive Kaeser steps down.

  • Margrethe Vestager, Silicon Valley’s Worst Enemy, Returns With Even More Power
    Bloomberg

    Margrethe Vestager, Silicon Valley’s Worst Enemy, Returns With Even More Power

    (Bloomberg) -- The regulator who’s made a name for herself by cracking down on tech giants is about to get even more power.Margrethe Vestager was picked Tuesday by EU Commission President-elect Ursula von der Leyen to be her executive vice president in charge of the bloc’s digital affairs –- a post that will hand the Dane oversight of issues relating to artificial intelligence, big data, innovation and cybersecurity.Even more concerning for those hoping to avoid billion-dollar fines, Vestager, 51, will also keep her job as one of the most feared antitrust regulators. She squeezed huge penalties out of Apple Inc. and Google, rousing wrathful tweets from U.S. President Donald Trump. Washington’s ire only raised her own profile, making her a close-run candidate to head the EU commission and landing her with a potentially powerful role as vice president in charge of digital policy.Silicon Valley firms probably have the sense of “better the devil you know” when they see Vestager return for another five years, said Pablo Ibanez Colomo, a law professor at the London School of Economics. “They know pretty much where she comes from and know her style” of strict enforcement.While the Dane dealt coolly with criticism, claiming she didn’t deliberately target tech companies for antitrust and tax cases, she often shied away from attempts to settle investigations without fines. Being resolute won her admiration but also sparked irritation in Paris and Berlin when she blocked the Siemens AG and Alstom SA rail deal they favored. She’s spent the last few months trying to sell herself as a politician prepared to act on fears that Europe is being left behind by China and the U.S., especially on technology.One of her first acts after taking office in 2014 was to start up a stalled Google investigation that her predecessor had come under fire for trying to settle. The Alphabet Inc. unit had to hand over 8.2 billion euros ($9.1 billion) in fines for three probes, make changes that saw it start charging for its Android phone software in Europe and alter shopping ads. It still faces the risk of more fines from fresh investigations and complaints it isn’t complying with existing antitrust orders.Vestager’s new post lets her move beyond the limits of antitrust enforcement, often criticized for ordering too few changes too late to help less powerful rivals. She’s paid close attention to how internet platforms host smaller companies they also compete with, an issue for Amazon.com Inc. in a probe the EU opened in July and also the subject of complaints targeting Apple Inc. and Google.Her work is “not an attack on businesses, this is an attempt for democracy to shape our society,” she told reporters on Tuesday. She described her new role as helping to plug gaps identified by antitrust investigations, pointing to recent rules that allow small companies to get answers from internet platforms if they think they are being treated unfairly. The measures appear to target issues raised by the EU’s Google probes.“That is a kind of regulation that you might see more of,” she said. “We had the insight from the specific cases but that insight will also lead you to consider more regulation.”Vestager will take over as digital chief at a time when the European Commission is coordinating the bloc’s 5G security, grappling with what role Huawei Technologies Co. should play in the build-out of the infrastructure, as the U.S. urges Europe to block the Chinese telecom giant in spite of the risks posed by angering an important trade partner.France’s Sylvie Goulard, picked as internal market commissioner, will work more directly on defining standards for 5G mobile and next-generation networks, cybersecurity rules and response strategies, along with leading industrial and defense policy.Von der Leyen told Vestager to coordinate work on an EU approach on the ethical implications of AI within the first 100 days of the mandate and look at ways to share non-personal big data. She must also coordinate work to find international agreement on a tax on digital companies by the end of 2020 or to propose a fair European levy. And to deal with fears that China unfairly undercuts European firms, she has been told to tackle the distortion of foreign state ownership and subsidies.Vestager and other commission nominees face hearings in early October at the European Parliament before lawmakers vote on their posts.“She will be very positively seen and she’s intelligent and smart enough” to win over lawmakers, said Andreas Schwab, a German member of the parliament.(Adds comments from law professor and Vestager starting in fourth paragraph.)\--With assistance from Lyubov Pronina.To contact the reporters on this story: Aoife White in Brussels at awhite62@bloomberg.net;Natalia Drozdiak in Brussels at ndrozdiak1@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Peter ChapmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • The Elevator Market Is Being Cornered
    Bloomberg

    The Elevator Market Is Being Cornered

    (Bloomberg Opinion) -- Ever since humans first rode in an elevator more than a century ago we’ve been afraid of getting stuck in one (or worse). The related requirement that these modern marvels are serviced and upgraded regularly is pretty handy for industry leaders Otis, Kone Oyj, Schindler and Thyssenkrupp AG. The companies generate about half their elevator revenues this way, as opposed to the lower-margin sales of original equipment.In good years Otis and Kone have achieved an operating return on sales in excess of 14%. That’s decent for the industrial sector, although a competitive Chinese market has made things more difficult lately.Tough safety regulations and the need to support big teams of technicians are a natural defense against new competitors. The four companies I mentioned have locked up more than 60 percent of the elevator market. Three of them are European.(1)The decent profitability and oligopolistic industry structure are big attractions for would-be acquirers of Thyssenkrupp’s elevator unit, which the German conglomerate has put up for sale. But the big four’s dominance won’t have gone unnoticed by antitrust officials, who could play a central role in determining how any further consolidation plays out.Depending on the bidder, any political desire to build a European elevator champion may run into resistance from those who fear entrenching the power of already dominant companies (as happened when Germany’s Siemens AG and France’s Alstom SA tried to merge their rail businesses).Thyssenkrupp isn’t the only active player in the industry. United Technologies Corp.’s move to spin out its Otis elevator unit has triggered speculation that the U.S. manufacturer might also get involved in M&A. Last week, Switzerland’s Schindler denied a report that it had been targeted by its American rival. Finland’s Kone, meanwhile, is open about wanting to buy the Thyssenkrupp business, telling the Handelsblatt newspaper last week that the two companies would be “a perfect fit.”Combining Kone and the Thyssenkrupp unit would create an industry behemoth with more than 16 billion euros ($17.7 billion) of sales. Though weaker than Kone’s, Thyssenkrupp’s elevator earnings have tended to far outstrip what the unwieldy German conglomerate makes from its other businesses. Its future should be bright too.Urbanization, aging populations and more single-person households are all spurring the construction of denser, taller residential buildings, especially in Asia. China accounts for more than 60% of the world’s new elevator installations.It’s reasonable to think the Thyssenkrupp elevator business would be worth about 15 billion euros if carved out – double the value investors ascribe to the whole conglomerate today. Add a premium for potential synergies and the value could rise further. Kone and Thyssenkrupp would complement each other well: the former is stronger in China while the latter has a bigger U.S. business. And the potential procurement, research and labor force savings from a merger would surely beat any earnings improvements that a private equity buyer could deliver by itself.The big question is whether antitrust officials would agree to two of the big four elevator firms merging? It’s barely a decade since the European Union smacked the companies with almost 1 billion euros in fines for running a price-fixing cartel in several countries. Company employees rigged bids involving hospitals, the European Commision noted. Hardly a good precedent.Thyssenkrupp is burning cash and its stock has fallen more than 35% in the past year. It can ill afford to get involved in another protracted and ultimately unsuccessful antitrust review. Earlier this year Brussels blocked an attempt to combine its European steel operations with Tata Steel. Kone could sell certain assets to ease competition concerns. Still, it’s understandable that Thyssenkrupp is said to favor a partial sale to private equity, according to Bloomberg News’s Aaron Kirchfeld and colleagues. This might not realize the highest price but it’s surely the easier deal to pull off, provided trade unions can be reassured.Europe has three world-beating elevator makers. Reducing the trio to two has clear benefits for the companies. What’s in it for customers isn’t quite so obvious. (1) The maintenance business is more fragmented, however.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Is Siemens a Buy?
    Motley Fool

    Is Siemens a Buy?

    The German industrial giant is worth a close look from dividend-loving investors.