Siemens Healthineers’ logo appeared on attire at its manufacturing facility in Forchheim, Germany, on October 7, 2016. On November 12, 2023, Siemens (SIEGn.DE) announced plans to decrease its €33.5 billion ($39.07 billion) ownership in Siemens Healthineers (SHLG.DE) by distributing shares of the medical equipment company to its shareholders. The German engineering firm will lower its stake from 67% to 37% or below by allocating 30% of its Healthineers shares to its investors, identifying a direct spin-off as the most favorable approach. Siemens aims to further reduce its ownership to under 20% in the medium term, possibly beginning before the spin-off receives approval, according to CEO Roland Busch. This strategic move is viewed as a method to sharpen Siemens’ emphasis on technology. Siemens’ future stake in Healthineers, which specializes in medical imaging and diagnostics equipment—having gone public in 2018—has faced scrutiny from investors in recent months. The company has gradually diminished its initial 85% stake in Healthineers, selling 2% for approximately €1.45 billion in February. The share transfer will not generate immediate funds for Siemens but will enable the group to concentrate on core areas like factory and building automation, as well as its Mobility train-making business. Busch remarked that both Siemens and Healthineers would gain agility and focus from the separation, allowing Siemens to redirect attention to its software and digital initiatives linking hardware with artificial intelligence. No specific timeline has been provided for the spin-off, which depends on approvals from both Siemens’ investors and those at Healthineers, potentially requiring an extraordinary general meeting. Siemens is also awaiting consent from the German tax authorities for the spin-off, which is advantageous compared to distributing shares as a dividend in kind, a route that could carry a significant tax burden. Healthineers expressed support for this decision, seeing it as a means to enhance its share price by alleviating uncertainty regarding Siemens’ intentions for its stake. CEO Bernd Montag stated, ‘We appreciate the clarity,’ asserting the move as a step towards becoming a fully independent entity. The divestment is perceived by investors as a pivotal moment for Busch, who has been at the helm since 2021, with a contract extending until 2030. Notably, some large shareholders had urged Siemens to refocus on its primary industrial and building automation businesses. Maria Mihaylova, a fund manager at Union Investment—one of Siemens’ top 20 investors—described it as an important and welcome step. On the same day, Siemens announced that CFO Ralf Thomas will retire in fiscal 2026, with Veronika Bienert, CEO of Siemens Financial Services, stepping in as his successor. Thomas, 64, will continue to serve on Healthineers’ supervisory board post-retirement from Siemens.