EVERY WEEKDAY FOR THE REST OF THE YEAR, TED MAGAZINE IS COUNTING DOWN THE TOP 20 STORIES OF 2018. BELOW, THE #9 MOST-VIEWED STORY OF THE YEAR, ORIGINALLY PUBLISHED ON OCTOBER 19, 2018.
A report on Bloomberg’s International News website says ABB is working with a credit advisor, and the plan may be to sell its power grid unit.
Bloomberg is reporting ABB is working with Credit Suisse Group AG and Dyal Co. on a possible sale or spinoff of the power grid division. The report says ABB is talking about the future of that division without naming sources, adding that a final decision on whether or not to sell would come by the end of this year. The power grid division is believe to be valued at $10 billion.
This is not the first time ABB has talked about selling its power grid business. In September of 2015, tED magazine reported ABB discussed the possibility of getting rid of the power grid division and acquiring other pieces for its portfolio.
“We are ready to reengage in meaningful M&A,” Spiesshofer, 51, said on Friday, September 18, 2015 in an interview with Reuters and Bloomberg in New York. “We have added to the portfolio, but we have also parted ways with the portfolio. This is the way it will continue. We are really shaping ABB in a leaner, more agile way.”
Nearly a year later, tED magazine learned ABB had decided to keep the power grid division, and begin what it called the “Next Level” strategy. Peter Voser, chairman of ABB’s Board of Directors, said on September 30, 2016, “The successful execution of our Next Level strategy to date has led to significantly improved operational and financial performance and a more externally focused, simpler ABB. The entire board worked with the management and external advisors on all elements of Stage 3, which will unlock value for customers and all shareholders while ensuring the company’s long-term success. The continued transformation of our Power Grids division under ABB’s management is the best of all carefully assessed options for shareholders. We firmly support the management team and the action plan presented today.” The “Next Level” strategy began on January 1, 2017.
In November of 2017, tED magazine reporting ABB reorganized its power grid division as part of its “Power Up” transformation program. The reorganization meant consolidating manufacturing plants in Poland, Canada and South Boston.
The Bloomberg report from this week says ABB could sell the power grid division to focus more on robotics and automation.
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