Freshfields Bruckhaus Deringer, Hengeler Mueller, Latham & Watkins and Flick Gocke Schaumburg advised on a deal in which German industrial giant Siemens AG is spinning off its energy unit.

Freshfields advised Siemens Energy and Hengeler advised Siemens, while Latham advised the banking consortium and FGS advised Siemens on tax matters.

The spinoff has been valued by analysts at roughly €10 billion ($11 billion), according to Reuters.

Munich-based Siemens is pulling out of the energy business at a time when energy production is shifting from traditional fossil fuels to renewable energy to generate electricity.

Siemens Energy, which makes gas and steam turbines, generators, transformers and compressors, has about 91,000 employees and posted €29 billion in revenue in fiscal 2019. That was a 4% decline from a year earlier.

"Global energy markets are undergoing a fundamental change," Christian Bruch, chief executive officer of Siemens Energy, said in a statement.

The new public offering could prove to be the biggest IPO of the year, as companies have avoided the market since the coronavirus outbreak spread to Europe.

The spinoff is part of a major reorganization at Siemens. In 2018, the company spun off its health care unit.

As part of the deal,  Siemens will retain 45% of the shares, 9.9% of the shares will be invested in the company's pension fund, and 55% of Siemens Energy will be spun off to Siemens shareholders. Siemens said it intends to significantly reduce its stake in Siemens Energy within 12 to 18 months.

Freshfields partners Rick van Aerssen and Thomas Bücker advised Siemens Energy.

Hengeler advised Siemens, led by corporate partners Simon Patrick Link and Jochen Vetter, as well as partner Alexander G. Rang on capital markets. Partner Carsten Schapmann also advised on corporate, Wolfgang Groß on capital markets, Matthias Scheifele on tax, and Wolfgang Kellenter on intellectual property law.

Latham & Watkins advised the banking consortium, led by partners Oliver Seiler on capital markets, and Rainer Traugott on corporate. Partner Thomas Fox advised on tax.

FGS partners Ingo Stangl, Claus Ritzer and Jens Hageböke advised Siemens on tax matters.

Siemens' in-house counsel was led by Andreas C. Hoffmann.