Abbott to sell diagnostic section

The future of 900 jobs at one of the Republic's biggest employers was unclear yesterday following an $8 billion (€6.1 billion) multinational takeover.

It emerged yesterday that pharmaceutical and healthcare giant, Abbott, plans to sell its diagnostic businesses to GE Healthcare for $8.19 billion.

According to an Abbott spokeswoman, the deal will involve two Irish facilities, in Sligo and Longford, and approximately 900 jobs.

Diagnostics is just one of a number of activities carried out at the Sligo plant, while the Longford facility is diagnostics only.

But it was not clear yesterday if the deal would affect hit either facility. An Abbott spokeswoman said that it would be an issue for GE. Its spokesman said it would be seeking various efficiencies, but added that it was too early to predict if this would have any impact on jobs in the Republic.

GE's statement said that the multinational had bought the business to broaden its own diagnostics division. It did not indicate whether the acquisition would lead to a shake up in either operation. Abbott's diagnostics products include systems for detecting conditions like HIV and different strains of hepatitis.

GE Healthcare is a division of General Electric, the world's second largest corporation. Its head offices are in Fairfield, Connecticut in the US. The healthcare subsidiary is headquartered in Britain, and specialises in diagnostic, medical technology and screening, and pharmaceuticals.

Abbott has eight sites in the Republic, which employ a total of 3,400, making it one of the biggest private sector employers in the State. The deal announced yesterday is subject to regulatory approval, but the boards of both corporations have backed it.

The news came as General Electric announced that 2006 profits rose 11 per cent on the previous year to $20.7 billion. Earnings per share increased 13 per cent to $1.99. Full-year sales grew 10 per cent in 2006 to $163.4 billion.

Profits for the last quarter of 2006 grew 12 per cent on the same period in 2005 to $6.6 billion.