Zurich-based ABB to acquire GE’s Industrial Solutions business for $2.6 billion

ABB sees a yearly potential for cost synergies of $200 million arising as a result of this acquisition.

On Monday, Swiss engineering giant ABB stated it will be acquiring General Electric’s Industrial Solutions for $2.6 billion.

The deal is help expand its footprint in the North American market.

As a result of the deal, Zurich-based ABB sees a potential for cost synergies of $200 million yearly, which includes terms for long-term usage of GE’s brand.

In the previous year, GE’s Industrial Solutions had reported sales worth $2.7 billion and had an operating margin of nearly 8%.

In August sources familiar with the matter at hand had said, GE, which is in the midst of a strategic re-organization and is divesting all non-core assets, had resumed negotiations to sell the business to ABB after the U.S. industrial conglomerate moderated its price expectations.

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