ABB heading for a multi-billion acquisition in India

ABB is reported to have offered the equivalent of $2.2 billion for an acquisition of an electrical and automation business in India, according to Swedish media.

Citing Indian Economic Times, reports that ABB has been discussing with Larsen & Toubro (L&T) a purchase of the company’s electrical and automation division, offering $2.2 billion while L&T requested $2.8 billion.

According to the sources, ABB aims to strengthen the position of ABB India; however, the company did not want to confirm or reject the claims.

“We do not comment on market pressure or speculation,” said ABB Global Communications Manager Saswato Das.

“India is a big and very important market for ABB and we are among the largest manufacturers of electrical equipment in the country. We invest around $100 million annually to upgrade, among other things, existing plants or build new ones,” he added.