ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business Deals

ABB in talks with Hitachi and others on sale of power grid unit

Swiss industrial group seeks to unload business valued at over $10bn

Swiss industrial group ABB is reportedly in talks with Hitachi and others to sell its power grids business.   © AP

WOLFSBURG, Germany -- Switzerland's ABB is reportedly in talks with multiple suitors to sell its power grid business, including Hitachi and a major Chinese company.

The Swiss engineering group is believed to be weighing a full or partial sale of the division, as well as a spinoff and public listing. Selling the entire business could fetch the company more than $10 billion. ABB said it cannot comment on the matter. Hitachi also declined to comment.

The power grid division markets such equipment as transformers, power transmission and distribution equipment, and control systems in India, China, North America, Europe and elsewhere. It logged revenue of roughly $10 billion in 2017, accounting for about 30% of ABB's annual total.

Compared with robotics and other leading businesses, ABB's power grid arm suffers from low profitability.

Asked about the possibility of selling the power grid business, ABB CEO Ulrich Spiesshofer said on an earnings conference call in October that, "When the time is right to talk more about it, we will talk about that."

In Japan, Hitachi and Mitsubishi Electric have power grid operations. The former formed a joint venture with ABB in 2015 that supplies equipment.

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

{{sentenceStarter}} {{numberReadArticles}} free article{{numberReadArticles-plural}} this month

Stay ahead with our exclusives on Asia; the most dynamic market in the world.

Benefit from in-depth journalism from trusted experts within Asia itself.

Try 3 months for $9

Offer ends September 30th

Your trial period has expired

You need a subscription to...

See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

See all offers
NAR on print phone, device, and tablet media