ABB Ltd will pay Rs 400 crore to acquire the operating businesses of ABS Global Industries and Services Ltd, a wholly owned subsidiary of its Swedish parent. According to a company filing on the Bombay Stock Exchange, its board of directors approved the proposal at the meeting held on Friday.
The businesses to be acquired include transformer insulation — boards and components, low-voltage breakers and switches and vacuum interrupters.
The announcement said the businesses will be acquired as a slump sale on a going-concern basis. The effective date of the acquisition is fixed as April 1, this year.
“This acquisition has been made to have business synergies,” the announcement said. The new businesses are expected to generate additional revenue of about Rs 250 crore on a full-year basis, it added.