ABB: to sell grid division for up to 7.8 billion dollars
(CercleFinance.com) - ABB said on Monday that it is going to sell its power grid division to Japan's Hitachi in a deal based on an enterprise value of 11 billion dollars.
ABB will initially retain a 19.9% stake in the unit, while returning 100% of the 7.6-7.8 billion dollars proceeds from the 80.1% sale to shareholders.
The company said it will opt for an "expeditious and efficient manner," through share buyback or similar mechanism.
The divestment will enable the Swiss engineering group to focus on digital industries, simplifying its business model and structure with four leading businesses, it said in a statement.
These four businesses where ABB ranks number 1 or 2 are electrification, industrial automation, robotics, and motion, ABB said.
The deal is expected to close in the first half of 2020.
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