MUNICH/FRANKFURT (Reuters) – German industrial conglomerate Siemens is weighing options for its Gas and Power unit, carving out all or part of the business to prepare it for a potential stock market listing or a merger with a peer, two people close to the matter said.

The business caters to the oil and gas industry as well as to power generators and distributors.

The sources said Siemens’ supervisory board may decide on a potential carve-out at a meeting on Tuesday and could present the plans at the company’s capital markets day on Wednesday.

Siemens declined to comment on the future strategy for the Gas and Power unit, whose gas turbines business has seen orders slump as utilities shift towards renewable energy sources.

“The situation on the global market for fossil power plant technology remains unchanged. Siemens began tackling these challenges back in early 2015,” a company spokesman said.

Chief Executive Joe Kaeser has embarked on a strategy to simplify Siemens’ operations by separating the conglomerate into what he has termed “a fleet of ships” which thrive under their own steam.

The move is designed to enable the businesses to raise their own funds for acquisitions and investments as well as crystallising their standalone market value, removing some of the “conglomerate discount” that weighs on Siemens’ valuation.

As part of this push, Siemens listed its healthcare unit Healthineers last year.

Siemens also has a separately listed renewable power business, Siemens Gamesa.

Kaeser tried to combine its train segment Siemens Mobility with listed peer Alstom, but scrapped the deal earlier this year as antitrust concerns mounted. Analysts expect that Siemens will eventually opt for a stock market listing for the Mobility unit.

Siemens has told investors that its capital markets day would focus on its Gas and Power, Smart Infrastructure and Digital Industries businesses, none of which have so far have been set up as independent companies.

Gas and Power, headquartered in Houston, Texas, makes gear for oil and gas extraction and production, as well as gas and steam turbines and technology for power grids, including high-voltage transmission systems.

The unit was set up weeks ago as part of a reshuffle Siemens’ business units.