Siemens intends to spin off and give up majority stake in its Gas and Power business, which comprises power generation, power transmission, oil and gas, and related services, and transfer its majority stake in Siemens Gamesa Renewable Energy (SGRE) to a new company.

The spinoff was unanimously approved by the Supervisory Board on May 7.

Through spinoff of Gas and Power and transfer of Siemens' SGRE stake "a new major player on the energy market" will be created with business volume of €30 billion ($33.6 billion) and over 80,000 employees, Siemens said in the press release.

"This move will create a powerful pure play in the energy and electricity sector with a unique, integrated setup - an enterprise that encompasses the entire scope of the energy market like no other company," explained Joe Kaeser, president and CEO of Siemens AG.

The new company will have a stock exchange listing by September 2020.

Siemens said the move would help the company meet its medium-term growth and profit targets by focusing its portfolio on "dynamic growth markets and efficiency gains".

The future industrial core of Siemens will be the growth markets of automation, industrial digitalization and smart infrastructure.

Source: Siemens