Bloomberg is reporting that Mitsubishi Heavy Industries Ltd is talking with Siemens AG about a possible purchase or joint venture agreement, which would see Mitsubishi take over Siemens’ gas turbine business.
The people reportedly said that Siemens is talking with several other firms as well.
According to Bloomberg, people familiar with the matter stated that the options range from a full or partial sale of the division to a joint venture.
Bloomberg opined that the move, should it go forward, would probably encounter anti-trust issues as it would leave just two major global gas turbine suppliers: Mitsubishi and GE.
In its last quarterly earnings call, Siemens reported that its profit had been cut in half due to a fall in global turbine demand. The company said higher taxes and more demand for renewable energy was responsible for the decline in profits.
This article originally appeared on our sister site, Electric Light & Power