GE buys Abbott units for $8.2bn

GE is increasing its presence in the healthcare world

Industrial giant General Electric (GE) is buying two of Abbott Laboratories' medical testing businesses for $8.2bn (£4.1bn) in an all-cash deal.

GE is buying the fellow US firm's routine laboratory testing unit, and bedside testing equipment division.

Healthcare is now one of GE's fastest-growing business areas, accounting for 14% of its profits.

Analysts said it was a good deal for Abbott, as it is keeping hold of its two most profitable testing divisions.

The units that Abbott is retaining are its molecular arm, which includes tests for cancer, and its diabetes-care operation.

World's second-largest firm

JP Morgan analyst Michael Weinstein said that the deal was worth $2bn more than Abbott had expected.

The purchase is the latest takeover announcement by GE in recent weeks.

It is also buying the aerospace business of UK defence firm Smiths, and oil and gas fields equipment maker Vetco Gray.

With its business interests also ranging from nuclear power to consumer website iVillage, GE is the world's second-largest company by market capitalisation.