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The following content is from an older version of this website, and may not display correctly.Swiss engineering conglomerate has joined the battle to acquire UK-based power infrastructure supplier Chloride saying it has had a 325p per share offer accepted by the Chloride board, valuing the company at £860.
Following the announcement the share price continued to rise amid speculation that Emerson, Chloride's original suitor, would come in with a counter offer. In April Emerson had a 275p per share offer rejected.
In a statement ABB said: 'The boards of directors of both companies have agreed on a recommended offer price of 325 pence per share. The offer price values the business at approximately 860 million pounds. Chloride shareholders will also be entitled to receive a final dividend of 3.3 pence per share as proposed on 24 May 2010. The acquisition is subject to approval by Chloride shareholders, the UK High Court and certain regulatory authorities.'
"The combination of Chloride's strong position in the fast-growing medium- to high-power UPS business with ABB's global reach and complementary power and automation offering provides significant growth opportunities for both businesses," said Joe Hogan, ABB's CEO. "The transaction is in line with our strategy to acquire companies especially in areas where demand is converging across both of these businesses."
Chloride would be integrated into ABB's Discrete Automation and Motion division. Chloride Group PLC is based in London, employs about 2,500 people and reported revenue of 336 million pounds in its fiscal year ended March 31, 2010. ABB Group of companies operates in around 100 countries and employs about 117,000.
Following the announcement the share price continued to rise amid speculation that Emerson, Chloride's original suitor, would come in with a counter offer. In April Emerson had a 275p per share offer rejected.
In a statement ABB said: 'The boards of directors of both companies have agreed on a recommended offer price of 325 pence per share. The offer price values the business at approximately 860 million pounds. Chloride shareholders will also be entitled to receive a final dividend of 3.3 pence per share as proposed on 24 May 2010. The acquisition is subject to approval by Chloride shareholders, the UK High Court and certain regulatory authorities.'
"The combination of Chloride's strong position in the fast-growing medium- to high-power UPS business with ABB's global reach and complementary power and automation offering provides significant growth opportunities for both businesses," said Joe Hogan, ABB's CEO. "The transaction is in line with our strategy to acquire companies especially in areas where demand is converging across both of these businesses."
Chloride would be integrated into ABB's Discrete Automation and Motion division. Chloride Group PLC is based in London, employs about 2,500 people and reported revenue of 336 million pounds in its fiscal year ended March 31, 2010. ABB Group of companies operates in around 100 countries and employs about 117,000.