Global energy technology giant ABB has acquired GE’s Industrial Solutions arm in a multi-billion-dollar deal designed to strengthen its grip on the worldwide electrification market.
The deal, announced recently, will see ABB pay US$2.6 billion (£1.92 billion) for the division and immediately form a long-term “strategic supply relationship” with GE for products that GE sources from the two companies.
ABB spoke up the potential for GE Industrial Solutions to expand its access to North America through an “established installed base”, “strong roots” and “deep customer relationships”.
Ulrich Spiesshofer, chief executive at ABB, said the move strengthened the firm's number two position in the global electrification market and would create “significant value” for its shareholders.