ABB to Buy GE Industrial Solutions for $2.6 Billion

Swiss industrial conglomerate ABB Ltd. (ABB.SK) said Monday it will buy General Electric Co.'s (GE) Industrial Solutions unit for $2.6 billion.

The acquisition will expand ABB's access to the North American market and has the potential to save around $200 million a year in cost synergies within five years, the company said.

ABB Chief Executive Ulrich Spiesshofer said the two companies have also agreed to establish a long-term strategic supply relationship, which will create "significant value for shareholders."

GE Industrial Solutions, which posted revenue of $2.7 billion in 2016, will be integrated into ABB's Electrification Products division, which manufactures and installs components for low and medium voltage electrical systems.

ABB said it has decided to put a previously announced share buyback program on hold because of the transaction, which it expects to close in the first half of 2018.

Write to Nathan Allen at

(END) Dow Jones Newswires

September 25, 2017 01:46 ET (05:46 GMT)