Goldman to advise Siemens on water unit sale: sources
FRANKFURT (Reuters) - Siemens (SIEGn.DE: Quote) has picked Goldman Sachs (GS.N: Quote) to advise on the sale of its Water Technologies unit, part of the engineering conglomerate's efforts to streamline operations and stay competitive in a weak global economy, two people familiar with the matter said.
The sale may be launched officially in the second quarter, the sources added.
Siemens and Goldman Sachs declined to comment.
Siemens, Germany's second-most valuable company which makes products ranging from fast trains and gas turbines to hearing aids, in November announced it plans to sell the water unit with annual sales of about 1 billion euros ($1.35 billion).
Since then, several possible bidders have approached the Munich-based group and investment bankers have started to work on the topic, the sources said.
Siemens built up its water technology operations through a flurry of acquisitions over the last decade. Among others, it bought the water systems and services division of US Filter from Veolia Environnement (VIE.PA: Quote) for $1 billion in 2004.
"Asian companies are also likely to throw their hats into the ring," one of the people said. The region was experiencing rapid economic growth, climate change impacts, rising populations and stricter energy and water regulations and is therefore expected to see heavy investment in water treatment equipment in coming years, he said.