ABB purchased Bernecker + Rainer Industrie-Elektronik

Q.  Which company purchased  Bernecker + Rainer Industrie-Elektronik, a Swiss major on April 4, 2017?
- Published on 05 Apr 17

a. Siemens
b. ABB
c. Vodafone
d. Symantec

ANSWER: ABB
 
ABB purchased Bernecker + Rainer Industrie-ElektronikABB has bought Austrian group Bernecker + Rainer Industrie-Elektronik, the Swiss engineering company on April 4, 2017.

This is helping it to challenge German rival Siemens in the industrial automation sector.

The biggest deal under Chief Executive Ulrich Spiesshofer's four-year leadership is part of ABB's strategy of expanding its product line-up beyond processing raw materials.

This is because price swings have dented demand from oil and gas companies.

B+R, which was founded by two friends in the basement of an Austrian bank in 1979, makes programmable controls for machines used by companies like Nestle, Procter & Gamble, and Roche.

The privately held company also makes components for machines used by automotive makers BMW, Daimler and Volkswagen.

Its products include industrial PCs and factory automation devices which are designed to increase productivity.

The deal increases ABB's sales in the industrial automation segment to around $15 billion and consolidates its position as number two in the $130 billion global industrial automation sector behind Siemens.

The purchase will add to ABB's industrial automation division, which has struggled in recent quarters.

Sales for the division, which also competes with Emerson , Rockwell Automation, and Schneider, fell 9 percent in 2016, while new orders dropped 20 percent, largely due to falling demand from oil and gas customers.

The B+R deal, ABB's biggest acquisition since it bought U.S. low-voltage products maker Thomas & Betts for $3.9 billion in 2012, is a departure from Spiesshofer's previous strategy.

This has focused on trimming costs and shedding fringe businesses.

ABB: Know More
  • Headquarters: Z├╝rich, Switzerland
  • CEO: Ulrich Spiesshofer (15 Sep 2013)
  • Revenue: 33.83 billion USD (2016)

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