Giants Join Forces! Two Major International Acquisitions Just Announced!
Source: 中国之光网|| Views: 3662
At the start of 2025, the global electrical industry was shaken! On March 3, ABB Group announced the completion of its acquisition of Siemens' switch and socket business in China, aiming for dominance in China's switch and socket and smart building markets. Coincidentally, TE Connectivity recently unveiled a $2.3 billion acquisition deal, absorbing US grid giant Richards Manufacturing Company, targeting the global power upgrade and smart city lighting sectors.
1 ABB completes acquisition of Siemens' switch and socket business in China
Switch and socket business
On March 3, the official WeChat accounts of "ABB Electrification" and "Siemens Home Electrical" successively announced that ABB Group has completed the acquisition of Siemens' switch and socket business in China. This acquisition represents another important strategic move for ABB in the global electrification and automation technology sector, and also marks a key step forward in ABB's layout in the smart building sector in China. It is reported that Siemens' switch and socket business in China achieved revenue of over USD 150 million in 2024. ABB Group stated that by completing this acquisition, ABB will gain access to Siemens' rich product solutions in the switch and socket business in China, a powerful distribution network covering 230 cities across China, and a professional team of 350 people. At the same time, by integrating the product lines and channel resources of Siemens' switch and socket business in China, ABB can not only expand its own market coverage and significantly enhance its channel breadth in the Chinese market, but also better serve regional customers in the smart building sector. It is worth mentioning that the acquisition agreement was initially signed on May 17, 2024, and the closing was completed after approximately ten months. According to the acquisition agreement, ABB will fully take over Siemens' switch and socket business in China. ABB Group stated that this business will have a positive impact on ABB's profit margin. The switch and socket products, smart home systems, smart door locks, and other home automation accessories owned by this business will further expand ABB's product portfolio. These products will continue to use the "Siemens" brand under the terms of a brand licensing agreement. Following the completion of the Acquisition, ABB will be able to significantly enhance its competitive advantage by enriching its product portfolio and expanding distribution channels. It can provide customers with innovative integrated Solutions, better supporting the modernization of building facilities and improving energy efficiency to address global carbon reduction challenges. Mustafa Sarkaya, Global President of ABB Electrification Smart Buildings, stated: "This Acquisition further consolidates ABB's leading position in the Chinese switch and socket market, while also highlighting our long-term growth plans for this business in the Chinese market. Through this Acquisition, we have enriched our smart building technology portfolio, enabling us to meet users' evolving needs by providing safer, smarter, and more sustainable Solutions.We are ready to provide users with complete Solutions covering switches and sockets, home and building automation, final power distribution, and energy consumption management, to address many local challenges, including rapid urbanization, energy transition, building electrification, decarbonization, and the advancement of artificial intelligence and digitalization." According to available information, ABB is a technology leader in the field of electrification and automation. Its electrical technology covers the entire electrical value chain from substations to end-use electricity. Medium and low-voltage products and systems integrate a series of digital and connected technological innovations, including products such as distribution automation, final distribution protection, switches and sockets, switchgear, distribution cabinets, distribution boxes, and electrical installations. With a history of over 140 years, ABB has approximately 110,000 employees worldwide and is listed on the SIX Swiss Exchange and Nasdaq Stockholm.
2 $2.3 billion! TE Connectivity announces
A major Acquisition
According to the official WeChat account of the e-commerce platform "ittbank", TE Connectivity recently announced that it will acquire Richards Manufacturing Co., a US manufacturer of utility grid products, for approximately $2.3 billion in cash, aiming to strengthen its position in the electric utility market and capitalize on the opportunity of surging power demand. The transaction is expected to be completed in June this year. TE Connectivity stated that this Acquisition will drive its sales growth. Upon completion, Richards Manufacturing's business will become part of TE Connectivity's Industrial Solutions segment, contributing approximately $400 million to its annual sales. According to available information, Richards Manufacturing, headquartered in Irvington, New Jersey, USA, specializes in the production of overhead and underground electrical and gas distribution products. It holds a unique market position, particularly in medium-voltage cold shrink cable accessories and network protector products, making it a premier supplier of utility grid products.
TE Connectivity is a globally renowned connector and sensor company, with operations in approximately 140 countries. Its products are widely used in numerous fields including automotive, data transmission systems, consumer electronics, communications and enterprise networks, aerospace, defense and marine, medical, energy, and lighting. In the lighting sector, TE Connectivity's lighting connectors cover important components such as LED bases, Poke-In connectors, plug and socket lighting connectors and their accessories, lighting cable assemblies, street lighting control devices, and Ballast connectors. These are suitable for various lighting products ranging from outdoor Luminaire to commercial refrigeration, enabling seamless integrated control and transmission of power and data across multiple building systems. Currently, TE Connectivity's LUMAWISE Endurance products provide a hybrid solution for LED street lighting systems, making urban lighting smarter. The company's light control products for automated outdoor lighting systems offer reliable control of street lighting, ensuring visibility, safety, and aesthetic appeal in the urban night-time light environment, helping to reduce the risk of nighttime accidents, deter crime, and improve pedestrian visibility. Meanwhile, TE Connectivity's horticultural lighting solutions can further improve the light environment in plant cultivation facilities such as plant factories and vertical farms through its combination of connector, sensor, and relay solutions, helping plants grow faster and thereby increasing growers' market returns. With such lighting technology strength, TE Connectivity's acquisition of Richards Manufacturing Company not only helps it seize huge market opportunities during grid replacement and upgrade cycles, but also creates favorable prerequisites for the layout and promotion of its lighting application solutions in various sub-sectors of urban lighting, thereby further enhancing its market position in global smart city construction.
Source materials: ABB Electrical, ittbank, China Lighting Network, compiled
