ABB completes divestment of Power Grids to Hitachi
ABB today reached a significant milestone in the company’s transformation towards a decentralized global technology company, with the completion of the divestment of 80.1 percent of its Power Grids business to Hitachi, as planned.
The divestment allows ABB to focus on key market trends and customer needs such as the electrification of transport and industry, automated manufacturing, digital solutions and increased sustainable productivity.
“Today’s announcement marks an important turning point in the history of ABB. Since announcing our intention to divest Power Grids to Hitachi, ABB has made significant progress in becoming a more customer-focused and simplified organization. We believe Hitachi is the best owner for Power Grids and its next stage of development, building on the solid foundation achieved under ABB’s previous ownership,” said Peter Voser, Chairman of the Board of Directors of ABB. “ABB remains committed to using net cash proceeds from the transaction for a share buyback program. Our goal is to execute this in an efficient and responsible way, taking account of the prevailing circumstances.”
Consistent with ABB’s capital structure optimization program, ABB plans to return to shareholders net cash proceeds of $7.6–7.8 billion from the sale of Power Grids. ABB initially intends to launch a share buyback program of 10 percent1 of the company’s issued share capital shortly after the release of its second quarter 2020 financial results. This represents about 180 million shares, when excluding treasury shares.
The share buyback program will be executed on a second trading line on the SIX Swiss Exchange and is planned to run until the company’s Annual General Meeting (AGM) on March 25, 2021. At the AGM, ABB intends to request shareholder approval to cancel the shares purchased through this program and to announce further details on its ongoing capital structure optimization program. ABB aims to maintain its “single A” credit rating.
“With the divestment, ABB is well positioned for the future with a strong focus on industrial customers. Leveraging our technology leadership and passion for innovation, we will now focus on creating superior value for our customers, employees and shareholders. We will do this by evolving our decentralized business model, strengthening our performance management culture and driving active portfolio management,” said Björn Rosengren, ABB CEO.
ABB is a long-term partner of Hitachi and will initially retain a 19.9 percent equity stake in the joint venture that will operate as Hitachi ABB Power Grids and be headquartered in Switzerland. The joint venture is a global leader in power systems, with annualized revenues of approximately $10 billion and roughly 36,000 employees, serving customers in over 90 countries. The Board of Directors of the joint venture includes Timo Ihamuotila, Chief Financial Officer of ABB, and Frank Duggan, former member of ABB’s Executive Committee. Hitachi ABB Power Grids will be led by Claudio Facchin as CEO.
The transaction terms with Hitachi remain as announced on December 17, 2018, with an enterprise value of $11 billion for 100 percent of the business. ABB has a pre-defined option to exit the retained 19.9 percent shareholding three years after closing.
ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 110,000 talented employees in over 100 countries. www.abb.com
Important notice about forward-looking information
This press release includes forward-looking information and statements which are based on current expectations, estimates and projections about the factors that may affect our future performance, including the economic conditions of the regions and industries that are major markets for ABB. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates”, “plans”, “targets”, or similar expressions. However, there are many risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this press release and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others, business risks associated with the volatile global economic environment and political conditions, costs associated with compliance activities, market acceptance of new products and services, changes in governmental regulations and currency exchange rates and such other factors as may be discussed from time to time in ABB Ltd’s filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 20-F. Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.
1 Maximum 10 percent of the company’s issued share capital, including treasury shares
Phone: +41 43 317 71 11
Phone: +41 43 317 71 11
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Bennett Goodman and Avi Kalichstein Launch Hunter Point Capital to Invest in Alternative Investment Managers30.10.2020 19:03:00 CET | Press release
Bennett Goodman and Avi Kalichstein today announced the formation of Hunter Point Capital LP (“HPC”), an independent investment firm seeking minority stakes in middle-market alternative asset managers. As part of the launch, HPC has formed a strategic partnership with a group of leading global investment entities associated with Jacob Rothschild. "I am thrilled to initiate this next phase of my career with such an exceptional team. Our HPC partnership seeks to leverage our collective expertise as investors and business builders to cultivate the next generation of outstanding investment franchises,” said Goodman. “Our goal is to help general partners achieve their long-term business objectives faster and with more certainty.” “At our core, Hunter Point Capital is focused on investment excellence. We seek managers with proven track records, who will benefit from a strategic, impact-oriented partner,” said Kalichstein. “There is an expanding universe of high-performing investment manageme
Code:n@xt: PROCAD to Lift the Veil on a New PLM Generation30.10.2020 17:31:00 CET | Press release
On November 11, 2020, PRO.FILE next, the next product generation by PROCAD will be officially launched. At 11:00 AM EST, 10:00 AM CET, the groundbreaking, cloud-enabled platform for the digital transformation of business processes will be presented to the public for the first time at Code:n@xt, a must-attend event for anyone interested in digital transformation, information and product lifecycle management. PROCAD's managing directors, strategists, business developers, and developers will come together for Code:n@xt to present PRO.FILE next – whose code will change the world of PLM software. The online event will feature breakout sessions and a live demo of the new system, take a look at today's market demands and digital transformation trends, and give attendees the opportunity to chat with the company's experts. Where does digital transformation start? Where does a PLM platform as a Product Data Backbone fit into it? How do you build an information twin as a digital replica of a piec
INX Applies for Listing on the Canadian Securities Exchange (CSE)30.10.2020 14:00:00 CET | Press release
INX Limited (“INX”) today announced its application for listing of its digital security, the INX Token, on the Canadian Securities Exchange (“CSE”). The listing application is subject to the approval of the CSE. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201030005313/en/ Shy Datika, Co-Founder and President at INX (Photo: Business Wire) INX recently launched the first SEC-registered digital security IPO for both retail and institutional investors. INX intends to use the net proceeds from the IPO for a launch of a regulated trading platform for digital assets and provide novel trading and capital raising financial instruments to enterprises in collaboration with traditional exchanges worldwide. The CSE is a proponent of exchange-listed digital securities and continues to work towards additional services in connection with the post-trade processes for these securities. Richard Carleton, CEO of the CSE has stated that “The
Veracyte Announces New Data Published in Journal of Clinical Oncology Suggest the Prosigna Breast Cancer Test’s Genomic Underpinning Drives Prognostic Performance30.10.2020 13:15:00 CET | Press release
Veracyte, Inc., (Nasdaq: VCYT) announced today that findings from the first study evaluating the molecular drivers underlying multiple prognostic genomic breast cancer tests were published in the Journal of Clinical Oncology (JCO). Results suggest that the genomic underpinnings of Veracyte’s Prosigna® Breast Cancer Gene Signature Assay, particularly the test’s relative weighting of genes predicting tumor proliferation, may explain the classifier’s previously demonstrated, higher likelihood of predicting long-term risk of recurrence among certain breast cancer patients, compared to other breast cancer tests. The study compared the commercial forms of four breast cancer recurrence-risk tests: the PAM50-based Prosigna Risk of Recurrence (ROR), the Oncotype DX Risk Score (RS), EndoPredict (EP) and Breast Cancer Index (BCI). It expands upon a previous evaluation of these same tests using an identical dataset, which compared their ability to accurately predict 10-year distant disease recurre
Global Smartphone Market Shows Signs of Recovery in Q330.10.2020 12:55:00 CET | Press release
The global smartphone market declined 4% YoY but grew 32% QoQ to reach 366 million units in Q3 2020, according to the latest research from Counterpoint’s Market Monitor Service. This recovery was driven by all key markets, like the US, India and Latin America, returning slowly to normal due to eased lockdown conditions. The smartphone market has shown resilience to the ill effects of COVID-19 both from the supply and demand side. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201030005359/en/ Smartphone Shipment Market Share and Growth Q3 2020 (Graphic: Business Wire) Commenting on the overall market dynamics, Associate Director Tarun Pathak said, “Eased lockdown conditions in all key markets made way for exports and imports, thus streamlining the supply chain again. Also, the pent-up demand due to lockdowns helped the smartphone market take a recovery trajectory.” Samsung regained the top spot, shipping 79.8 million units t
On the Occasion of UN World Cities Day, Urban 20 (U20) Engagement Group of the G20, Announces the Creation of a “Global Urban Resilience Fund” in Response to COVID-1930.10.2020 11:05:00 CET | Press release
The Urban 20 (U20), a G20 Engagement Group, today announced that it is working to create a Global Urban Resilience Fund, the first fund of its type developed by cities, for cities. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201030005112/en/ U20 Chair H.E. Fahd Al-Rasheed at the U20 Mayors Summit (Photo: AETOSWire) Speaking about the announcement U20 Chair, H.E. Fahd Al-Rasheed, President of the Royal Commission for Riyadh City, noted; “We have the opportunity right now to learn from the impact of COVID-19, to study how to build cities which are more resilient and agile. The cities of the U20 have taken the lead to develop a fund for city action to combat the pandemic and mitigate future urban shocks. The goal of the fund is to accelerate the transmission of new learning and ideas for a more secure future for all urban residents.” The Fund comes as a response to the findings of the U20 Special Working Group (SWG) on COVID
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom