Siemens Ltd (NSE:SIEMENS) will be making a major deal when it buys the oilfield equipment company Dresser-Rand Group for a whopping $7.6 billion. The deal made the news back in July when Siemens Ltd (NSE:SIEMENS) started biding for the company; the main reason for the company is to make a name for itself in Houston, Texas.

Siemens Ltd (NSE:SIEMENS) stated that Houston will become its domain for the oil and energy sector; the acquisition will retain the name of Dresser-Rand Group and its executive officials. The stock market value of Dresser-Rand Group Inc (NYSE:DRC) has shot up, which is a good sign for Siemens Ltd (NSE:SIEMENS).

Siemens Ltd (NSE:SIEMENS) officials said that the combination of Siemens Ltd (NSE:SIEMENS) and Dresser-Rand would be great for the oil and energy sector in the country. Oil and energy are the hottest commodities and extremely significant to any country. Also, these sectors attract a lot of investors because of huge cash flows.

Officials from Dresser-Rand Group Inc (NYSE:DRC) said that they’re pleased with the deal; the deal was finalized after a thorough competitive process. Siemens Ltd (NSE:SIEMENS) is a company that emphasizes on quality and assures professionalism.

Oil and energy sector recently took a hit when U.S announced sanctions against Russia, cutting off all the deals mid-process. Many U.S companies were working in Russia to drill oil wells and extract oil that could have opened up unlimited prospects for the ages to come.

Siemens Ltd (NSE:SIEMENS) officials said that given the geo political situation in the world, it is necessary to pool up our resources – and the U.S is a country that has a lot of potential in oil and energy sector. Siemens Ltd (NSE:SIEMENS) over the years, for different reasons, had missed out on these booming sectors and is now making up for all the lost time and money.

Analysts claim that oil and energy sector is declining and unless companies invest in them, they will take a massive hit. Siemens Ltd (NSE:SIEMENS) is also trying to catch up with its rival General Electric Co, which has invested largely over the years in oil.

This acquisition has made Siemens Ltd (NSE:SIEMENS) a serious contender in the aforementioned sectors – the deal itself is the company’s (NSE:SIEMENS) biggest deal to date.

The political situation all around the world requires the U.S to encourage such firms that invest in oil and energy; these sectors are not only lucrative for the inverting becoming, but all contribute massively to the county’s economy. Energy is the base of every economy, and countries like China and Japan are thriving on energy whereas the east is also rich in oil.

Siemens (NSE:SIEMENS) deal also received appreciation from other companies that respect the fact Siemens has finally decided to indulge in serious sectors – sectors which matter in the long run.

Oil and energy are the premiere sectors in the market, but they’re also a hassle to handle. Many companies want to be a part of the sector; therefore the competition is immense and there’s a lot of politics involved. But the fact that it’s quite necessary financially and politically makes it one of the most sectors globally.

It is believed that Siemens Ltd (NSE:SIEMENS) acquisition of Dresser-Rand will bring the company more stability and huge profits in the long run.

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