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.