ABB negotiating Power Grids sale with Asian companies

As Reuters reports, ABB is in talks with Hitachi Ltd. and Mitsubishi Electric Corp. to sell all or part of its power grids business, according to sources familiar with the issue.

The company has also started negotiations with State Grid of China, according to one source, with the CEO Ulrich Spiesshofer speaking to the Chinese company’s leadership during a trip to the country this week.

The deal could be announced by the end of next week, and structured as a joint venture, with a financial investor potentially joining the successful bidder in taking a stake, the source added.

ABB is expected to keep a shareholding in the business, which may be valued at more than $11 billion including debt, and which it would continue selling components to, reports Reuters.

While ABB refused to comment on this, Swedish media report that Mitsubishi Electric denies conversation with ABB on the sale of Power Grids.

Source: Reuters; di.se; Privata Affärer

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