ABB will not sell Power Grids; Power Up programme announced
While Swedish media recently reported on the activist shareholder Cevian wanting to break up ABB’s Power Grids business and sell it in parts to strategic buyers, in today’s update of strategic review ABB leadership has revealed it will continue the transformation of Power Grids under ABB ownership.
Following a comprehensive strategic portfolio review, the Board and Executive Committee of ABB have concluded that the transformation of Power Grids under ABB ownership will unlock maximum shareholder value compared to other ownership options such as sale, IPO, spin-off or joint venture, the company said in a press release.
To realize the full potential of the division and continue the ongoing transformation, the company introduced today the new “Power Up” initiative, a massive program covering key aspects of the business, which is expected to drive growth and enhance earnings accretion by focusing on core operational strengths and high growth segments as well as digitally enabled services and software.
“In our strategic portfolio review we have listened carefully to all stakeholders and all expressed views. After a very thorough and detailed process, supported by leading advisors, we have concluded that the continued transformation of Power Grids under ABB’s ownership creates the highest value for our shareholders and customers,” ABB CEO Ulrich Spiesshofer said.