ABB buys Chloride Group for $1.25 blln

ZURICH: ABB is buying Chloride Group for an agreed 860 million pounds ($1.25 billion), the Swiss engineering group said on Tuesday, announcing its second acquisition within a month.

ABB, which competes with French group Schneider, said Chloride had agreed on an offer of 325 pence per share.In April, Chloride, whose products protect against power shortages, had rejected an offer for 723 million pounds from Emerson Electronic.

ABB, which sells power equipment to utilities as well as to oil and gas companies, had $7.1 billion in cash at the end of the first quarter, and had been expected to go on a buying spree. Chloride will be part of ABB's discreet automation division.

Last November, ABB revamped its automation divisions and triggered talk it was about to go for a buy. Chloride employs about 2,500 people and reported revenue of 336 million pounds in its fiscal year ended March 31.

In early May, ABB announced the buy of US software group Ventyx, and then a fortnight later said it was raising its stake in its Indian subsidiary.