Why Siemens Agreed to Buy Dresser-Rand for $7.6B

The transcript discusses a trend of German companies acquiring US firms, highlighting recent deals by Siemens and Merck. Siemens is expanding into the shale gas sector, while Merck diversifies into chemicals. The discussion covers capital redeployment, European market dynamics, and competition between GE and Siemens. Despite significant mergers, market reactions remain subdued, possibly due to market saturation and recent events like the Ali Baba fervor.

What trends are observed in the recent mergers involving German companies and their acquisitions in the US?

How does the Siemens deal relate to the shale gas boom, and what does it signify for the company's strategy?

Discuss the implications of Merck's diversification from pharmaceuticals to chemicals.

What factors are contributing to the increase in European M&A activity in the US market?

Analyze the market reaction to recent mergers and acquisitions and its impact on asset prices.