Swiss engineering group ABB has signalled that it may retain its power grids division under a new strategy to be unveiled next month — despite calls for a break-up of its businesses from an activist investor, about which Transformers Magazine has earlier reported.

ABB divestment deal suggests it will keep power unit

Swiss engineering group ABB has signalled that it may retain its power grids division under a new strategy to be unveiled next month — despite calls for a break-up of its businesses from an activist investor, about which Transformers Magazine has earlier reported.

Financial Times analysts believe that by announcing plans to sell a high voltage cable system business – a part of the power grids division — for €836 million a few days ago, the company suggested it is set on streamlining the business, rather than a complete separation.

Mr Spiesshofer is now expected to use a strategic announcement on 4 October to stress growth opportunities for the power grids business, and identify synergy benefits with other parts of ABB, reports Financial Times.

Analysts expect the 4 October announcement will also confirm the extension and possible expansion of ABB’s share buyback programme, additional cost-saving measures, and plans for other possible disposals.

Source: Financial Times
Photo: ABB