MUNICH (dpa-AFX) - Technology giant Siemens is expanding its rail operations through an acquisition in Italy. The DAX-listed group announced on Thursday in Munich that it plans to acquire several core businesses from Mermec Group, a leading Italian provider of rail signaling, electrification, and diagnostic and measurement technologies. The acquisition is intended to bolster signaling activities while strengthening the company's industrial footprint and market access in Italy.
Financial details were not disclosed. According to the report, the businesses in question generated approximately 430 million euros in revenue in 2025 with around 1,700 employees, serving customers in more than 70 countries. Siemens expects significant synergy effects from the deal. The transaction is projected to be accretive to earnings per share, pre-PPA (purchase price allocation), in the second year following completion.
Closing is expected by the end of 2026, subject to customary conditions. Bloomberg News had previously reported on the impending deal. Citing sources familiar with the matter, the report suggested that Mermec could be valued at more than one billion euros as part of the transaction.
The acquisition reinforces Siemens' stance that its Mobility rail business remains a core operation, a point that investors and analysts have periodically questioned in recent years.
Siemens shares rose sharply on Thursday, hitting a record high. By midday, the stock was up more than three percent on the DAX. The rally was primarily supported by positive analyst commentary, which suggested significant further upside following the second-quarter results released the previous day. The share price had last reached a record high in February. The stock has gained approximately 15 percent so far this year, while the long-term gains for the DAX's most valuable company are even more substantial./nas/jha/
