Siemens Buys Israel's Solel

FRANKFURT -- German industrial conglomerate Siemens AG said Thursday it has purchased Israel's Solel Solar Systems Ltd. for about $418 million.

Solel, which operates solar thermal fields for producing electricity, has been looking for a buyer for the past six months in order to gain more exposure to the international market and more capital for new initiatives, a Solel spokeswoman said.

Siemens Chief Executive Peter Loescher has acquired stakes in several solar-power companies this year.

The deal bolsters Siemens's initiative to expand its presence in renewable energies such as wind power, photovoltaics and solar thermal power. The company targets sales of €25 billion ($37.3 billion) from its "green technologies" portfolio by fiscal 2011, up from €19 billion last year.

"It's definitely crystal clear that even during the crisis we will substantially increase the share of our sales which are attributable to green technologies," Siemens Chief Executive Peter Loescher said in March.

The Solel spokeswoman said the base of the company's operations will remain in Israel. The firm employs about 400 people at its Beit Shemesh, Israel, facility.

Siemens outbid two French companies, Alstom SA and Areva SA, by increasing its offer from $250 million previously, German daily newspaper Handelsblatt reported Thursday. Alstom declined to comment.

Siemens expects the transaction to close by the end of the year, pending approval by regulatory authorities.
—Sara Toth Stub and William Horobin contributed to this article.