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Deal Overview
On October 2, 2025, reports surfaced that Siemens AG (US OTC: SIEGY ADR, $142.89; Market Capitalization: $228.6 billion) is actively evaluating a potential spin-off of a substantial portion of its majority stake in Siemens Healthineers (US OTC: SMMNY ADR, $27.31; Market Capitalization: $61.6 billion), its publicly listed medical technology subsidiary.
The potential spin-off is part of Siemens’s broader effort to simplify its corporate structure and unlock shareholder value. By reducing complexity and allowing investors to focus on Siemens’s core industrial growth engines i.e Digital Industries, Smart Infrastructure, and Mobility, the company aims to sharpen its strategic identity as a focused technology leader.
Siemens is reportedly exploring mechanisms to distribute its Healthineers shares directly to Siemens shareholders, potentially via a special dividend. While this structure could offer tax advantages, executing a tax-efficient spin-off may be complex and could take up to 12 months to finalize.
Siemens AG Price Performance Spin-Off Details and Top 5 Shareholders
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Siemens held approximately 71.1% of Siemens Healthineers, which, along with its other segments, comprises the company’s Industrial Business. Post separation, Siemens would emerge as a more streamlined, software-centric industrial technology company, while Siemens Healthineers would operate as a fully independent, pure-play MedTech leader with enhanced strategic and financial autonomy.
This potential spin-off will mark the culmination of a multi-year strategic separation process. Siemens Healthineers was first listed via IPO in March 2018, with Siemens retaining an 85.0% stake at the time. Since then, Siemens has gradually reduced its holding through a series of transactions, including stake dilutions between 2020 and 2021 to support Healthineers’s acquisition of Varian Medical Systems. More recently, in February 2025, Siemens sold a ~2.0% stake, raising approximately €1.45 billion.
Siemens CEO Roland Busch is expected to provide additional strategic clarity at the upcoming Capital Markets Day on November 13, 2025, where further details on the spin-off structure and timeline may be disclosed.
Deal Rationale
Siemens AG’s proposed spin-off of Siemens Healthineers is a strategically sound and value-accretive move, aligned with long-standing investor demands and consistent with global trends toward portfolio simplification. The transaction is expected to unlock significant shareholder value, sharpen Siemens’s strategic focus, and enhance capital allocation flexibility.
The divestiture aligns with Siemens’s ambition to reposition itself as a pureplay technology company, focused on Digital Industries, Smart Infrastructure, and Mobility. These segments represent the company’s primary growth engines and are increasingly software-driven. The spin-off is expected to enhance Siemens’s strategic clarity and improve its peer comparability with higher-multiple industrial tech firms.
A full separation would unlock substantial financial flexibility, enabling Siemens to redeploy capital toward high-growth initiatives. Management has explicitly linked the review of its Healthineers stake to its €2.0 billion global investment strategy, with a focus on software, AI, and the industrial metaverse. This appears a positive catalyst for future M&A activity and organic growth, particularly in digital transformation and automation.
The move is also a direct response to shareholder activism. Siemens has historically traded at a discount to its sum-of-the-parts valuation, driven by conglomerate structure. This conglomerate discount has been a persistent concern among institutional investors, with Deka Investment citing a valuation gap of over 30.0% versus focused peers such as Schneider Electric. They believe the separation will help eliminate this structural discount. In the past Siemens was able to deliver value through the successful spin-off of Siemens Energy in 2020 reinforcing confidence in management’s ability to execute and deliver valuation uplift.
For Siemens Healthineers, independence offers enhanced agility and direct access to capital markets. As a standalone entity, Healthineers can pursue its growth strategy, including large-scale R&D and acquisitions, without industrial constraints. The Varian acquisition serves as a precedent for its ability to raise equity independently. We expect the spin-off to sharpen Healthineers’s investment thesis and attract a dedicated MedTech investor base, potentially leading to multiple expansion.
Key Data
Spin-Off Research
Company Description
Siemens AG (Parent)
Siemens AG is incorporated in Germany and is headquartered in Munich. Siemens is a technology company focusing on automation and digitalization in the process and manufacturing industries, intelligent infrastructure for buildings and distributed energy systems, smart mobility solutions for rail transport, and medical technology and digital healthcare services. Siemens segments are Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, Siemens Financial Services, and Others. As of September 30, 2024, Siemens had around 313,000 employees.
Siemens Healthineers AG (Spin-Off)
Siemens Healthineers AG is a leading global medical technology company that provides healthcare equipment, solutions, and services. With a presence in over 180 countries and direct representation in more than 70, the company is listed on the Frankfurt stock exchange under the ticker SHL. The company focuses on improving access to healthcare for underserved communities and combating major diseases. The company’s main business areas include imaging, diagnostics, cancer care, and minimally invasive therapies, which are enhanced by digital technology and artificial intelligence. In the fiscal year 2024, Siemens Healthineers had approximately 72,000 employees worldwide and generated around €22.4 billion in revenue.
Organization Structure
Spin-Off Research