ZURICH (Reuters) - Power grids maker ABB is buying General Electric’s Industrial Solutions business for $2.6 billion in a bet it can improve the division’s lackluster margins over the next five years, the Swiss engineering company said on Monday.
Zurich-based ABB sees potential for annual cost benefits of $200 million with the deal, which includes an agreement for long-term use of GE’s brand and a strategic partnership.
FILE PHOTO: The logo of Swiss power technology and automation group ABB is seen in Baden, Switzerland June 23, 2017.
GE had resumed negotiations to sell the business to ABB after moderating its price expectations, people familiar with the matter told Reuters in August.
Credit Suisse and Dyal Co acted as financial advisers to ABB, and Davis Polk & Wardwell provided legal counsel.
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