Siemens intends to significantly reduce its stake in the Erlangen-based medical technology company Siemens Healthineers by 30 percent. The Munich-based company announced this in an ad-hoc statement released in the evening. Siemens’ current stake was 67 percent. Now, shares in the subsidiary Siemens Healthineers, valued at approximately €15 billion, are to be transferred to its shareholders.
The aim of this move is that Siemens will no longer have to fully consolidate the business of the Erlangen-based subsidiary. Furthermore, with this step, Siemens continues its long-standing strategy of focusing on its core business. Siemens currently holds just over two-thirds of Healthineers shares.
CFO: This Expands Siemens’ Opportunities
The shares are intended to be transferred to current Siemens shareholders, preferably via a direct spin-off. In practical terms, this means Healthineers securities will be credited directly to Siemens shareholders’ accounts. However, according to Siemens, this step is still subject to regulatory review.
In the long term, Siemens intends to retain only a significant minority stake in Healthineers. “Today marks the beginning of the next growth phase for Siemens,” stated CEO Roland Busch. With the transfer of the controlling stake in Healthineers, Siemens will focus on its “highly synergistic” portfolio.
CFO Ralf P. Thomas also emphasized that the deconsolidation expands Siemens’ strategic opportunities. The transaction’s execution is still subject to approval by the general meetings of both companies. Specific details are to be finalized in the coming months, with plans to announce them at the beginning of the second calendar quarter of 2026.
The Separation is Ultimately a Consistent Step
The separation of the two companies is ultimately a logical step – even if it was not an easy decision, as reported by IG Metall and the works council. For employees, it was important to achieve acceptable separation terms. The company has provided corresponding commitments, including maintaining collective bargaining agreements, job and location guarantees, and keeping the company headquarters in Germany.
Siemens Aims to Be a “Focused Technology Company”
“We support the concept of an integrated ‘Focused Technology Company’ because, from today’s perspective, it offers Siemens the best long-term prospects,” stated Jürgen Kerner, Second Chairman of IG Metall. “If you follow this logic consistently, Healthineers technologically doesn’t quite fit in the long term with the core elements of Digital Industries, Smart Infrastructure, and Mobility. Moreover, it has better chances on its own. Clinging to the current structure against the obvious is no longer feasible – instead, it’s important to optimally manage the change process.”
Siemens listed its medical technology unit on the stock exchange under the name Healthineers in March 2018 but retained a comfortable majority stake. Siemens currently holds about 67 percent of Healthineers shares and therefore must fully consolidate the subsidiary. At a recent share price of around €45 per Healthineers share, Siemens’ entire stake would be valued at approximately €34 billion.
Healthineers is in Good Shape
Healthineers, led by CEO and former German basketball league player Bernd Montag, is one of the world’s largest medical technology manufacturers. The company, now itself a DAX-listed corporation, produces medical imaging devices such as MRI and CT scanners, among other things, and provides hospitals with comprehensive solutions.
The laboratory diagnostics division – which includes, for example, technology for blood analysis – was initially considered a beacon of hope but has recently been viewed more as a candidate for sale. In 2021, Healthineers acquired the highly profitable US radiation therapy specialist Varian.
For the concluded fiscal year, Healthineers reported a profit of nearly €2.2 billion, thereby making a significant contribution to the parent company’s annual results. The company is generally considered profitable, even if growth forecasts have not always met all investor expectations. According to its own data, the company, headquartered at the old Siemens site in Erlangen, employs over 70,000 people worldwide.
Speculation about Siemens reducing its stake in Healthineers has been ongoing for a long time. While the subsidiary’s profits have recently helped cushion weaknesses in other parts of the conglomerate, Healthineers does not provide significant synergies for Siemens and ties up capital. Therefore, investors have long called for a full separation. Earlier this year, Siemens already sold some shares to partially finance acquisitions with the proceeds.
Siemens has previously spun off parts of its business multiple times – be it the semiconductor unit now operating as Infineon, Osram, or the energy technology unit Siemens Energy, which was listed in 2020. However, the conglomerate had not previously maintained such a high stake for over seven years as it did with Healthineers.
Sources: dpa and Reuters.
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