FRANKFURT, March 20 (Reuters) - German industrial conglomerate Siemens is buying a unit of Scottish oil service business Expro for 470 million euros ($622 million) to tap the oil and gas industry’s growing demand for underwater power lines.
The Munich-based company is buying the Connectors and Measurement Division of Aberdeen-based Expro, expanding its offering for the industry with sensors, measuring devices and underwater cable connectors, it said on Tuesday.
With its third takeover in the industry Siemens aims to supply oil and gas producers with power grids for extraction facilities at ever greater depth at sea as reserves that are easily recoverable dwindle and environmental concerns increase.
“This equipment forms a crucial part of the power grid that Siemens is currently developing for use on the sea bed at depths of down to 3,000 meters,” the German company said.
Siemens expects the market for deep-sea applications to reach 2 billion euros by 2020 and said they are one of the fastest-growing segments within the oil and gas industry.
The Expro division’s 450 workers generated sales of 90 million euros in 2011 from its locations in the United Kingdom, Norway, the United States, Brazil and Malaysia.