General Electric is close to a deal to sell its industrial solutions unit to ABB Ltd at a value of $2.5 billion to $3 billion, Bloomberg reported.
The companies are expected to announce the final agreement next week, though neither has publicly commented on the deal. However, the agreement could still be delayed or fall apart at this point.
The negotiations between the two companies continued when GE CEO John Flannery took on the role Aug. 1 and are part of a larger plan to divest the company’s assets that are not considered its core industrial businesses. GE has been reviewing its portfolio and sold its industrial water treatment business to French waste and water group Suez SA and Caisse de dépôt et placement du Québec for 3.2 billion euros earlier this year. Activist investor Trian Fund Management has also been pressuring GE to cut costs.
GE launched the bidding process on its industrial solution business in March. The sale’s proceeds would fund GE’s restructuring efforts.