ABB buys GE’s industrial solutions business for US$2.6bil

ZURICH: Power grids maker ABB is buying General Electric’s industrial solutions business for US$2.6bil in a bet it can improve the division’s lacklustre margins over the next five years, the Swiss engineering company.

Zurich-based ABB sees potential for annual cost benefits of US$200mil with the deal, which includes an agreement for long-term use of GE’s brand and a strategic partnership. In 2016, the GE business had sales of US$2.7bil.