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.
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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.
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(END) Dow Jones Newswires
September 25, 2017 01:46 ET (05:46 GMT)