ABB agrees $5.5 billion deal to buy UK group Rotork

Swiss engineering group ABB said Thursday it had agreed to buy UK rival Rotork in a deal worth about $5.5 billion as it seeks to strengthen its automation division.

Zurich-based ABB also reported higher second-quarter earnings, citing record-high orders across its products. From April to June, ABB said net profit rose seven percent to $1.2 billion, sales increased 14 percent to $9.5 billion, and orders jumped 30 percent to $12 billion.

ABB said it had agreed to pay 503 pence per share in cash for Bath-based Rotork, described in the report as one of the world's biggest manufacturers of safety devices that open and close valves in pipelines. Under the terms of the offer, Rotork shareholders would also be entitled to receive an interim dividend for the period to June 30, 2026, of up to three pence per Rotork share.

ABB said Rotork is expected to add three percent to its revenues. The transaction is expected to close in the first half of 2027 and is subject to a shareholder vote and customary regulatory approvals.

ABB is one of Europe's largest industrial engineering and technology groups and employs more than 100,000 people.