Power grids maker, ABB is set to penetrate the North American market and gain access to General Electric’s larger base of installations by buying its industrial solutions for $2.6 billion.
Zurich-based ABB sees potential for cost benefits of $200 million with the deal for long-term use of GE’s brand and a strategic partnership.
The engineering company says it will improve the margins over the next five years.
The company has reaffirmed its upgrade of old products with its technology to attract the declining U.S. market .
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ABB is suspending its $3 billion share buyback program as part of the deal, which will boost its position as the second-biggest supplier of electrical components.
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