MUNICH — The European Union (EU) Commission approved Siemens’ acquisition of Dresser-Rand, according to a press release.

The transaction is expected to be completed by the end of June, noted the release.

The deal is worth $7.8 billion, stated the release. Dresser-Rand shareholders will receive $85.20 per share. With the merger, the company expects to generate €200 million ($US 2.24 million) by 2019.

"With Dresser-Rand on board, we now have a comprehensive portfolio of equipment and capability for the oil and gas industry and a much expanded installed base, allowing us to address the needs of the market with world-class products, solutions and services,” said Lisa Davis, member of the Managing Board of Siemens AG, in the release.

“The current level of oil prices increases the focus of our customers for ways to reduce costs,” Davis continued in the release. “So despite the challenges of a low oil price, this also brings opportunities as we focus our efforts on offers that reduce costs and increase efficiency. The long-term growth trajectory for oil and gas remains intact.”

Dresser-Rand will be part of a new unit within Siemens Power and Gas Division to focus primarily on the oil and gas industry, reported the release. Dresser-Rand veteran Christopher Rossi will serve as the unit’s CEO.

You can find the entire release here.