ABB Set To Expand Globally With GE Industrial Acquisition
Zacks Investment Research | Sep 26, 2017 08:30AM ET
In a bid to strengthen global position in electrification, Swiss engineering behemoth, ABB Ltd (NYSE:ABB) recently announced that it has agreed to acquire GE Industrial Solutions, General Electric Company’s (NYSE:GE) global electrification solutions business. The value of the deal, which is expected to concludein the first half of next year, is worth $2.6 billion.
The company already has a strong presence in global electrification business and believes this buyout will enable it to expand access to the North American market. This acquisition will allow ABB’s Electrification Products (EP) division to integrate GE Industrial Solutions, resulting in a unique global portfolio and a complete offering for North American as well as global customers.
Buyout to Strengthen Electrification Business
Based in Atlanta, GA, GE Industrial Solutions is the designer of electrical solutions at the crossroads of digital and industrial — equipped to control electricity from grid to its point of use. GE Industrial Solutions, which employs about 13,500 employees, has a stronghold in more than 100 countries with deep customer relationships.
The acquisition will establish a long-term strategic supply relationship for GE Industrial Solutions as well as ABB products that GE sources currently. Moreover, ABB’s innovative technologies as well as ABB Ability digital offering along with GE Industrial Solutions’ complementary solutions will offer a very comprehensive offering to North American customers.
Our Take
ABB is one of the best managed industrial infrastructure, power and automation companies in the world that stands to benefit from investments made in the upgrade of power infrastructure. Year to date, the Zacks Rank #3 (Hold) company’s shares have returned 17%, outperforming the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.