Siemens will spin off and give up its majority stake in its lucrative Gas and Power division—comprising its conventional power generation, power transmission, oil and gas, and related services businesses—and transfer its current majority 59% stake in Siemens Gamesa Renewable Energy (SGRE) to the new business.

The company’s supervisory board announced the spinoff on May 7 as part of its Vision 2020+ strategy concept. The board said the move would help Germany-based Siemens meet medium-term growth and profit targets by “clearly focusing its portfolio on dynamic growth markets and efficiency gains.”

The Gas and Power spinoff and transfer of SGRE stake would create a new “major player on the energy market” with a business volume of €30 billion and over 80,000 employees, Siemens said. The carveout will give the new company “complete independence and entrepreneurial freedom,” it said. Siemens said the new company will have a stock exchange listing by September 2020.

The move will create a “powerful pure play in the energy and electricity sector with a unique, integrated setup – an enterprise that encompasses the entire scope of the energy market like no other company,” explained Joe Kaeser, president and CEO of Siemens AG.…

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