Power Move

ABB buys GE’s industrial solutions unit for $2.6 billion

Swiss power firm ABB said it will buy General Electric’s industrial solutions unit for $2.6 billion, the companies announced Monday. For ABB, the acquisition targets a number one spot in the electrification market, where it currently competes with Schneider in utilities equipment services and power grid modernization. For GE, the sale indicates a streamlining effort from recently appointed CEO John Flannery.

ABB is constantly looking to expand and innovate; its efforts in automation and grid modernization in recent years articulate some of the company’s major acquisitions: Baldor in 2011, Thomas & Betts in 2012, Southwire in 2015, and B&R earlier this year. The company’s acquisition criteria is aimed to fill strategic gaps in geography and its product and end-market portfolio. CEO Ulrich Spiesshofer spoke with Bloomberg about the prospects of organic growth following the deal:

 

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