Siemens weighs carving out Gas and Power unit: sources

MUNICH / FRANKFURT (Reuters) – German industrial conglomerate Siemens is weighing options for its gas and power unit, or two people close to the world. matter said.

The business caters to the oil and gas industry as well as to generators and distributors.

The sources said Siemens' supervisory board may decide on a potential carve-out at a meeting on Tuesday and could present the plans at the company's capital markets day on Wednesday.

Siemens declined to the future strategy for the Gas and Power unit, whose gas turbines business has seen its shift towards renewable energy sources.

"The situation on the global market for fossil power plant technology remains unchanged. Siemens began tackling these challenges in early 2015, "a company spokesman said.

Chief Executive Officer Joe Kaeser has embarked on a strategy of simplifying Siemens' operations by separating the conglomerate into what he has termed "a fleet of ships" which thrive under their own steam.

The move is designed to enable them to grow their own funds for their market value, removing some of the "conglomerate discount" that weighs on Siemens' valuation.

As part of this push, Siemens listed its healthcare unit Healthineers last year.

Siemens also has a separate list renewable power business, Siemens Gamesa.

Kaeser tried to combine with its segment Siemens Mobility with listed peer Alstom, but scrapped the deal earlier this year antitrust concerns mounted. Analysts expect that Siemens will eventually opt for a stock market listing for the Mobility unit.

Siemens has told investors that its capital markets day would focus on its Gas and Power, Smart Infrastructure and Digital Industries businesses, as well as other companies.

Gas and Power, headquartered in Houston, Texas, makes gear and technology for power grids, including high-voltage transmission systems.

The unit was set up weeks ago as part of a reshuffle Siemens' business units.