(May 12): Siemens AG is exploring a potential acquisition of Mer Mec SpA, an Italian maker of signalling and communications equipment for trains, people with knowledge of the matter said.
The German industrial conglomerate has been working with advisers as it studies a purchase of Mer Mec, the people said, asking not to be identified because the matter is private. Mer Mec could be valued at more than €1 billion (US$1.2 billion) in a deal, the people said.
Siemens is Germany’s most valuable company with a market capitalisation of about €209 billion. Apart from making trains, the firm is mainly known for its factory automation and building system products.
In recent years, the company has spun off its former energy division and has been reducing its stake in its medical equipment unit to focus on high-margin areas such as software and artificial intelligence.
Mer Mec is part of Angel Holding, a private high-tech holding in Italy founded by Vito Pertosa, who is also Mer Mec’s chief executive officer. An acquisition of Mer Mec would strengthen the technology and software part of Siemens’ train-making unit, bolstering management’s case that the mobility business is a key part of the group.
Deliberations are ongoing and there’s no certainty they will lead to a deal, the people said. A representative for Siemens declined to comment. A spokesperson for Mer Mec had no immediate comment.
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The Italian firm makes inspection and measuring technologies for railways, as well as train signalling systems and electrification and communication systems, according to its website. Its products and services are used in around 60 countries.
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