ABB Ltd.’s (ABB) prospective acquisition of Thomas & Bett has received antitrust clearance from the European Commission. This was the last regulatory authorization needed for the acquisition to go through. US, Canadian and Turkish antitrust clearance had already been received for the acquisition.
The shareholders of Thomas & Bett gave their approval in a meeting held on May 2, 2012. With all the required approvals received, the acquisition is expected to close shortly.
The acquisition was initially announced on January 30, 2012. The purchase price for the deal has been set at $72 per share in cash or approximately $3.9 billion. Thomas & Betts was valued at a 24% premium to its closing price on January 27, 2012 and a 35% premium to the volume weighted average stock price over the past 60 trading days.
Electrical components of Thomas & Betts complement ABB’s low-voltage protection, control and measurement products. The acquisition will broaden ABB’s low voltage portfolio. With the combination of Thomas & Betts’ network of more than 6,000 distributor locations and wholesalers in North America, and ABB’s well established distribution channels in Europe and Asia, the enhanced portfolio will be distributed widely, expanding ABB’s market reach in North America to about $24 billion. The acquisition will help ABB to meet its 2015 growth and profitability targets and create shareholder value. It will also provide significant value to shareholders of Thomas & Betts.
Based in Zurich (Switzerland), ABB Ltd. is a global provider of power and automation technologies that enable utility and industry customers to improve performance, while lowering the environmental impact. The company serves electric, gas, and water utilities, as well as industrial and commercial customers, with a broad range of products, systems, and services for power transmission, distribution, and power plant automation. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa. A major competitor of ABB Ltd. is Siemens AG (SI).
Currently, we are maintaining a Zacks #3 Rank (short-term Hold recommendation) on ABB Ltd.
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