Siemens to carve out EV charging business

BERLIN: Siemens plans to carve out its electric vehicle (EV) charging business, Siemens eMobility, as it looks to grow in the rapidly evolving industry, the German conglomerate said on Monday.

Siemens eMobility will be combined with recently acquired DC fast-charging specialist Heliox under a new legal structure.

The EV charging sector has been undergoing rapid growth and consolidation across Europe, North America and Asia, with many charging companies bought up by big energy companies including Shell and BP since 2017.

Heliox, focused on chargers for eBus fleets and eTrucks, competes with the likes of ABB, Sweden's Vattenfall and ChargePoint.

The acquisition of the Dutch company is targeted at extending market reach primarily in Europe and North America, Siemens said.

Last week, Siemens entered an agreement with German energy company E.ON, one of the leading providers of charging stations along the country's highways, to supply charging systems across Europe.

Speaking about Siemens' plans to further grow its EV charging business, managing board member Matthias Rebellius said the carve-out would "accelerate profitability by focusing on high potential business segments and strategically relevant geographies".

RBC analyst Mark Fielding, after speaking with the German company, said Siemens' management is keeping all options on the table for the charging business, including an initial public offering (IPO), M&A and partnerships.

Siemens said it was unable to provide concrete responses with respect to potential partnerships and M&A, but in general, "partnering remains a key strategic lever for us, which we would consider should the right opportunities arise".

"The carve-out helps ensure readiness to capture the right partnership opportunities as they become available," a company spokesperson added.

The EV charging business is currently part of Siemens' Smart Infrastructure division, where Fielding estimates it accounts for around 1% of revenue.

UBS analysts meanwhile said that they estimated revenue from the EV charging business at between 100 million and 200 million euros with "likely very low profitability".

Siemens said it does not disclose financial figures from individual business units.