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ABB Asea Brown Boveri to acquire C-E, Inc.

ABB Asea Brown Boveri to Acquire C-E, Inc

Combustion Engineering, Inc. Stamford, CT, and ABB Asea Brown Boveri, Ltd, Switzerland, have announced that their boards of directors have approved a definitive merger agreement.

Under the agreement, a subsidiary of ABB will begin a tender offer for all outstanding shares of Combustion Engineering, beginning in mid-November.

The tender offer will be subject to a number of conditions, including the tender of shares representing at least 80% of the outstanding shares. ABB said the transaction is not subject to financing. The tender offer will be followed by a merger in which all remaining shares will be acquired at the same price in cash.

ABB's president and CEO, Percy Barnevik, and Combustion Engineering's chairman and CEO, Charles E. Hugel, made the following joint statement:

"This merger will substantially improve the ability of ABB and Combustion Engineering to serve this customers in North America and in the world. The two companies are complementary in products, industry coverage and regional presence. The common heritage of leadership in technology in their respective fields and the shares emphasis on quality and excellence will help create a successful partnership."

The companies said they plan to maintain Combustion Engineering's headquarters in Stamford under the existing management structure once the acquisition is completed. Hugel will become nonexecutive chairman and George S. Kimmel will become president and CEO.

ABB Asea Brown Boveri is a leading supplier of electrotechnical equipment with total sales of about $20 billion and 200,000 employees in 140 countries. Products include power generation, power transmission and distribution, automation, transportation, environmental control equipment and services, financial services and other fields.

Combustion Engineering provides engineered products, systems and services to the worldwide power generation, process and public sector markets, with sales of $3.5 billion in 1988. The combined companies will generate about $7 billion in sales in North America, with some 40,000 employees.
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Title Annotation:Combustion Engineering Inc.
Publication:Modern Casting
Date:Jan 1, 1990
Words:316
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