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ABB buys GE unit for $2.6 billion to boost North American business

ABB sees a potential for cost synergies of $200 million yearly with the deal

Reuters  |  ZURICH 

GE goes local; invests $200 million in a tiny impoverished village in Bihar
This is GE in the age of localization. Photo: Reuters

ABB is buying General Electric's Industrial Solutions unit for $2.6 billion to expand its reach in North American markets, the Swiss engineering company said on Monday.

Zurich-based ABB sees a potential for cost synergies of $200 million yearly with the deal, which includes terms for long-term use of GE's brand. In 2016, Industrial Solutions had sales of about $2.7 billion, with an operating margin of some 8 percent.

GE had resumed negotiations to sell the business to ABB after the U.S. industrial conglomerate moderated its price expectations, people familiar with the matter told Reuters in August.

 

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, September 26 2017. 02:15 IST
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