Siemens stock is jumping after the industrials giant laid out plans to create a billion-dollar energy company

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Siemens' stock rose 4% on its plans to combine its gas-and-power and renewable-energy businesses to create a separate, billion-dollar energy company.

Siemens' stock jumped about 4% on Wednesday after it announced the spin off of its gas-and-power division and transfer of its renewable-energy business to the new company.

"This move will create a powerful pure play in the energy and electricity sector...that encompasses the entire scope of the energy market like no other company," Siemens CEO Joe Kaeser said in a press release.

"This move will create a powerful pure play in the energy and electricity sector...that encompasses the entire scope of the energy market like no other company," Siemens chief executive Joe Kaeser said in a press release."Combining our portfolio for conventional power generation with power supply from renewable energies will enable us to fully meet customer demand."

 

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