ABB Group announced on May 17th that it has signed an agreement to acquire Siemens’ switch and socket business in China. This strategic move aims to expand ABB’s market coverage in smart buildings, offering customers a wider range of products. The acquired business includes switches, sockets, smart home systems, smart door locks, and other home automation products, which will continue to be branded under Siemens through a licensing agreement.
Post-acquisition, ABB will leverage Siemens’ extensive distribution network spanning 230 cities in China, along with its regional sales, production operations, and management expertise. This acquisition, expected to be completed within the next twelve months, is anticipated to bolster ABB’s profits, though financial terms have not been disclosed. In 2023, Siemens’ switch and socket business in China generated over $150 million in revenue and employed a professional team of over 350 individuals.
Morten Wierod, Global President of ABB’s Electrification Smart Buildings division, emphasized, “This acquisition underscores our strategic focus and commitment to business growth in China. With expanded product offerings and new sales channels, we can deliver comprehensive ABB building automation and energy distribution solutions, enhancing smart building technology options for our customers.”
Additionally, another company terminated an acquisition. On the evening of May 16th, Shenzhen Textile A announced the termination of its proposed acquisition of 100% equity in Hengmei Optoelectronics. The decision was made due to the complexity of the restructuring plan involving multiple transaction parties. Despite earlier announcements, approval procedures from all transaction parties were not completed within the required timeframe. As a result, the company was unable to convene a shareholder meeting within six months after the initial board resolution on May 17, 2024.
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