Siemens Healthineers could divest diagnostics arm by 2030, says CEO

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FRANKFURT (Reuters) -Siemens Healthineers is considering divesting or spinning off its diagnostics division by 2030 after restructuring the division but has not yet spoken to any potential suitors.

It is possible that the diagnostics business will no longer be part of the medical technology group in 2030 if it is concluded that this is better for the division, said CEO Bernd Montag at a press briefing on the sidelines of its capital markets day on Monday.

For its financial years from 2027 to the end of September 2030, Healthineers is targeting annual revenue growth of 6-9% from its other two divisions combined, Imaging and Precision Therapy, while the diagnostics arm is expected to improve towards growth in mid-single-digit percentages.

The annual U.S. tariffs burden of about 400 million euros ($464 million) should be fully offset by 2028 thanks to improved productivity and higher prices, said finance chief Jochen Schmitz. 

Parent Siemens said last week that it would shrink its 33.5 billion euro stake in Healthineers by transferring shares in the medical equipment maker to its own shareholders.

The transfer would result in the German engineering group cutting its 67% stake to 37% or less, with Siemens focusing on trains as well as automation technology for factories and buildings.

Siemens could further reduce its holding to less than 20% in the medium term, it added.

($1 = 0.8620 euros)

(Reporting by Alexander HuebnerWriting by Ludwig BurgerEditing by Miranda Murray and David Goodman)