Growth-oriented M&A is often more exciting, but using M&A to
fill in gaps in the product line-up can be a very sound use of
shareholder capital. Such will prove to be the case, I think, with ABB’s (ABB) acquisition of GE’s (GE)
Industrial Solutions business. Although this deal does not generate a
significant change in my fair value today, I believe this was a sound
move that shores up the company’s low-voltage market presence. I
continue to believe that ABB shares are somewhat undervalued, but this
company hasn’t had the best execution track record in recent years
relative to some peers like Schneider (OTCPK:SBGSY) or Rockwell (ROK).
Read the full article here:
ABB Plugs A Gap
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