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ABB agrees to buy US Baldor Group

Swedish-Swiss engineering firm ABB announced on Tuesday that it had agreed to takeover Baldor Electric Company of the US in a $4.2 billion deal.

ABB agrees to buy US Baldor Group

“The transaction will substantially improve ABB’s access to the industrial customer base in North America, opening opportunities for ABB’s wider portfolio including energy efficient drives and complementary motors,” said the group.

The management of both groups had approved the transaction, and ABB would

launch a tender offer to buy Baldor’s outstanding shares for 63.50 per share, a premium of 41 percent over the US group’s stock price on November 29, 2010.

Arkansas-based Baldor employs about 7,000 people and reported an operating profit of 184 million dollars in the first nine months of 2010.

ABB said it planned to integrate Baldor into its motors and generators business, a move which would bring about savings of $200 million annually by 2015.

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SECURITY

Sweden’s US-style airport security plans criticised

Several authorities have criticised plans to introduce a new law that would provide for US security checks on United States-bound passengers at Stockholm’s Arlanda Airport.

Sweden’s US-style airport security plans criticised
Stockholm Arlanda Airport. File photo: Stina Stjernkvist/TT

The measures have been censured for being too expensive and lacking a sound legal footing, writes Svenska Dagbladet.

Several shortcomings exist in the government’s plans to implement the proposal, which would see armed US personnel carry out security checks at Arlanda, Swedish police said according to the newspaper.

Police legal advisors said American security at the Stockholm airport would require “some of the most far-reaching restrictions that can be made to a state's sovereignty”.

Sweden’s legal ombudsman, Data Protection Authority and Customs Service (Tullverket) all criticised the proposal, though the Public Prosecutor (Åklagarmyndigheten) and Civil Aviation Administration (Luftfartsverket) did not raise any objections, according to the report.

A bill is expected to be presented by the government in the spring.

READ ALSO: Drone halts air traffic at Stockholm's Arlanda Airport