ABB to Buy GE Industrial Solutions for $2.6 Billion
25 September 2017 - 4:01PM
Dow Jones News
By Nathan Allen
Swiss industrial conglomerate ABB Ltd. (ABB.SK) said Monday it
will buy General Electric Co.'s (GE) Industrial Solutions unit for
$2.6 billion.
The acquisition will expand ABB's access to the North American
market and has the potential to save around $200 million a year in
cost synergies within five years, the company said.
ABB Chief Executive Ulrich Spiesshofer said the two companies
have also agreed to establish a long-term strategic supply
relationship, which will create "significant value for
shareholders."
GE Industrial Solutions, which posted revenue of $2.7 billion in
2016, will be integrated into ABB's Electrification Products
division, which manufactures and installs components for low and
medium voltage electrical systems.
ABB said it has decided to put a previously announced share
buyback program on hold because of the transaction, which it
expects to close in the first half of 2018.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
September 25, 2017 01:46 ET (05:46 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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