Andritz AG and Siemens Austria announced April 11 the signing of a contract completing Andritz’s purchase of hydroelectric equipment supplier VA Tech Hydro. Subject to approval of antitrust authorities, the sale is expected to be complete by the end of May.
Andritz, an Austrian manufacturing equipment maker, reached agreement February 17 to buy VA Tech Hydro, the power machinery unit of VA Tech, from Siemens, a German engineering conglomerate. The purchase price was not disclosed.
European Union competition authorities ordered Siemens to sell VA Tech Hydro as a condition for approval of Siemens’ purchase of Austria’s VA Tech last year. Siemens chose Andritz’s bid over competitors Cross Industries of Austria and Impsa of Argentina.
Andritz chosen on three criteria
The parties said Siemens chose Andritz based on three criteria: an attractive overall package, including conditions and site; fulfillment of EU antitrust stipulations as to competence and competitiveness; and a convincing strategic concept for VA Tech Hydro’s Weiz, Austria, facility.
“VA Tech Hydro ideally complements Andritz’s product portfolio,” the parties said. “With the acquisition, Andritz will become one of the world’s leading manufacturers of water turbines with a global presence.”
Siemens Austria said the sale also serves the interests of Austria as an economic and industrial site, with “strong future perspectives” for the production site at Weiz.
Andritz has said the competitive ability of the Weiz facility will be secured by extending existing cooperation with an Andritz manufacturing facility in Graz, Austria. The acquisition adds about 30 percent to Andritz’s sales and enables it to deliver complete hydropower plants.