Germany's Siemens announced it will buy US oil equipment maker Dresser-Rand Industries, for $7.6 billion.
Siemens on Sunday said it offered 83 dollars per share, which puts the value of the deal at $7.6 billion or 5.8 billion euros, the company said on its website.
Sources close to the matter had confirmed to AFP Friday that GE had preliminary discussions with the Houston, Texas company, though they would not say whether GE intended to make a formal offer.
Siemen's Swiss rival Sulzer was also reportedly eyeing Dresser-Rand.
The interest comes as the grouop enjoys a business surge on the back of US shale oil and gas drilling.