U.S. Markets closed

Featured Company News - ABB Announces GE Industrial Acquisition; Set to Strengthen its #2 Global Position in Electrification

LONDON, UK / ACCESSWIRE / September 27, 2017 / Pro-Trader Daily looks at the latest corporate events and news making the headlines for ABB Ltd (NYSE: ABB), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=ABB. The Company announced on September 25, 2017, the acquisition of GE Industrial Solutions, a subsidiary of General Electric Co (NYSE: GE). GE Industrial Solutions is headquartered in Atlanta, Georgia, and has about 13,500 employees around the world. The subsidiary had revenues of $2.7 billion and operational earnings before interest, tax, depreciation, and amortization (EBITDA) margin of about 8%. ABB has agreed to acquire GE Industrial Solutions for $2.6 billion, where the transaction will be operationally accretive in year one. For immediate access to our complimentary reports, including today's coverage, register for free now at:


At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ABB; also brushing on GE. Go directly to your stock of interest and access today's free coverage at:



The Announcement

ABB views this acquisition as a step to strengthen its position in electrification globally and expand the access to the North American market. ABB and General Electric have agreed to establish a long-term, strategic supply relationship for GE Industrial Solutions products and ABB products that General Electric sources currently. Through this relationship, the transaction is set to create significant value for ABB's shareholders, according to the Company. ABB expects to realize about $200 million of annual cost synergies in year five, which would be crucial in bringing GE Industrial Solutions to peer performance.

GE Industrial Solutions will be integrated into ABB's Electrification Products (“EP”) division, resulting in a unique global portfolio and comprehensive offering for North America and global customers. The joint venture is set to benefit from ABB's innovative technologies and the ABB Ability digital offering, coupled with GE Industrial's complementary solutions and market access. ABB has agreed to retain the management team and build upon the experienced sales force. Post the close of the transaction, there will be an initial minor decline in EP's operational EBITA margin.

ABB's EP division delivers more than 1.5 million products to customers around the world each day, through a global network of channel partners and end-customers. EP offers a comprehensive portfolio of low- and medium-voltage products and solutions for a reliable flow of electricity from the substation to socket. Post this transaction, ABB has agreed to put the share buyback program on hold. The transaction is expected to close in H1 2018, subject to customary regulatory clearances.

Company Growth Prospects

On September 20, 2017, ABB received another major order from energy supplier EnBW for the expansion of the charging column network on German motorways. By the end of 2017, ABB will have delivered an additional 117 rapid-charging columns at the locations of service station operator Tank & Rast. The latest generation of charging columns is connected to the Internet via a cloud solution, enabling cashless payments among other things. In 2016, EnBW awarded an order to ABB for 68 rapid-charging stations with a high-charging capacity of 50 kW. With this order, ABB further expanded its market-leading position in the charging infrastructure for electric mobility in Germany.

Last Close Stock Review

On Tuesday, September 26, 2017, the stock closed the trading session at $24.56, marginally down 0.37% from its previous closing price of $24.65. A total volume of 955.71 thousand shares have exchanged hands. ABB Ltd's stock price advanced 5.36% in the last one month, 4.78% in the past six months, and 9.16% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 16.56%. The stock is trading at a PE ratio of 23.68 and has a dividend yield of 3.09%. The stock currently has a market cap of $53.25 billion.

General Electric's share price finished yesterday's trading session at $24.93, slightly falling 0.72%. A total volume of 38.53 million shares have exchanged hands, which was higher than the 3-month average volume of 38.50 million shares. The Company's stock price advanced 1.80% in the last one month. Shares of the Company have a PE ratio of 28.59 and have a dividend yield of 3.85%. The stock currently has a market cap of $216.17 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily