With the largest sales in the history of the company tries to ABB CEO Ulrich Spiesshofer the liberation. The Swiss electrical engineering group division sells the majority of the approximately 36, 000 employees strong power grid, and thus meets a demand of the activist Investor Cevian. Of the net proceeds for the share of 80.1 per cent, amounts to 7.6 to 7.8 billion dollars, as FIG announced on Monday. The divisions-total value at $ 11 billion. The money should be distributed through share repurchases or similar transactions to the owner. The completion of the transaction, expected in the first half of the year 2020. ABB have an Option to sell the remaining shares.
In the "heart" of the industry giants, the applicable division staff work in Switzerland, 2800 6500 ABB, as CEO Spiesshofer at the media conference announced on Monday. Hitachi have agreed to take over all employees, and is committed to Switzerland as a location. "You should stay here," the FIGURE-head. Hitachi was interested to get the employees and the know-how. He said that Hitachi will expand its business in Switzerland. The extent to which Spiesshofer can for the new owner speak, is, however, unclear. In Hitachi's press release on the business are no data.
In Switzerland, produced FIGURE, especially at the site in Sécheron, near Geneva, for the power network division. About a year ago, the industry announced that companies in the outsourcing of ABB traction transformer business to Poland. For cost reasons, then 100 Offices in Switzerland, should be deleted. To print the policy, it was agreed, finally, to 85.
adjustments to the main seat
To do adjustments to it if necessary at the company's headquarters in Oerlikon, the main. This should be optimized according to spiesshofer. Overall, ABB wants to save by the sale of the Division to approximately $ 500 million annually and across the group. To what extent this will have an impact on jobs in this country, he did not quantify in more detail. FIG but I will try to make any Changes in a socially responsible manner, and retraining and further training cushion.
at the same time with the agreement with Hitachi, ABB announced a strategic realignment. The previous matrix structure to be resolved, therefore, with the completion of the transaction in the year 2020. FIG wants to simplify the structure of the group, the remaining divisions will be given more autonomy.
Spiesshofer has pressed FIG with a multibillion-dollar austerity program and a stronger focus on the digitization of his stamp. But, while ABB supports Megatrends such as renewable energy, electric mobility, or the increasing use of robots, has disappointed the growth. Since taking office, the former management consultant in September of 2013, the FIG has lost share value, and thus significantly worse than the European industrial sector as a whole, or even the German rival Siemens.
With the sale of the Swiss hope that the new thrust. "Today's announcement opens a new Chapter in the history of ABB," said Board President Peter Voser. The group intends to provide a competitive return for the shareholders. The ABB shares rose premarket by almost four percent.
Investor Cevian is satisfied
The activist FIGURE-Investor and major shareholder Cevian in view of the planned spin-off of the power grid division and the restructuring of the group satisfied. "The measures announced are the right steps in the development of FIG, and strengthen the long-term competitiveness of the company," said Cevian Co-founder Lars Förberg. "We support the Board of Directors and Management strategic direction we have taken." Investor Cevian had already been called for years, the power division to secede. The Investor holds approximately five percent of the FIG.
The purchase of the ABB power system division is also the largest transaction in the history of Hitachi. Power Grids came in 2017, with a turnover of 10.4 billion dollars, lagging behind the other divisions, but in terms of profitability. Among the main competitors are Siemens, General Electric and Mitsubishi Electric.
Created: 17.12.2018, 08:12 PM