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BREAKING NEWS

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

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

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ZURICH (Reuters) – ABB <ABBN.S> is buying General Electric’s <GE.N> 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.

(Reporting by John Miller; Editing by Michael Shields)
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