Engineering group ABB has said it will take over Power One in the US, a company specializing in renewable energy such as solar. The deal will make ABB a major player in inverter production.
Swiss-Swedish engineering company ABB announced Monday it would take over California-based Power One for about $1 billion (766 million euros). It said the deal had already been approved by the US firm's administrative board.
Power one is a leading maker of solar photovoltaic inverters, which are needed to transform the continuous current from solar panels to alternating current ready to be fed into energy grids.
Bigger market share
"Solar photovoltaic [technology] is becoming a major force reshaping the future energy mix," ABB Chief Executive Joe Hogan said in a statement, adding that with the takeover of Power One his company would become a major player in the sector.
The US firm last year posted sales of about $1 billion and has a workforce of 3,300 people at home, in China, Italy and Slovakia.
Analysts often describe the inverter market as extremely difficult. The devices have suffered from price pressures amid difficulties for a string of solar industry firms, including Germany's Solarworld. ABB rival Siemens for instance is currently withdrawing completely from that business because of awesome Asian competition.
hg/msh (Reuters, AFP)