ABB's new structure could lead to spin-off of Power Grids division
ABB [VTX: ABBN], the Swiss industrial giant, may spin off its new Power Grids division, according to Dagens Industri.
This is after yesterday's announcement that ABB is to restructure its organisation into four new divisions in which large parts of ABB's power operations and some of its automation operations are to be placed into a division named Power Grids. ABB also announced that Power Grids will be subject to a strategic portfolio review.
The Swedish business daily cited unnamed sources who believe the reorganisation will likely lead to all or some of Power Grids being spun off in the future.
Meanwhile, the paper also cited ABB's Managing Director, Ulrich Spiesshofer, who said that while nothing can be excluded, he denied that ABB is planning a spin off. He said the company conducted a review of its robot operations in 2009 and despite speculation the unit might be sold, ABB decided to keep it and change it. Spiesshofer said the strategic review of Power Grids will be concluded in 2016, the article added.
The item noted ABB's other three new divisions, Electrification Products, Discrete Automation and Motion and Process Automation are all far more profitable than Power Grids and that the group as a whole would be more profitable without Power Grids.
Power Grids is the largest of the four new divisions with a turnover of SEK 106bn (EUR 11.3bn).
Dagens Industri