Deals
ABB to Review Unit, Cut Costs Amid Interest From Activist
- RBC analyst sees potential for sale of power-grids unit
- ABB revenue growth targets for 2015-2020 cut to 3-6 percent
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ABB Ltd., in which activist investor Cevian Capital AB has been building a stake, is pooling its power-distribution assets in a possible prelude to selling the unit as part of an accelerated overhaul.
ABB will gather its utilities operations, spanning high-voltage power lines, substations and transformers into a new Power Grids division, the Zurich-based company said Wednesday. While supplying utility companies generates an estimated $12.6 billion in revenue, according to Bank of America, it’s viewed by analysts as a weaker part of ABB’s portfolio, under pricing pressure and competition from emerging market peers.