ABB sells cable business to NKT Cables
NKT Cables is acquiring ABB’s global high-voltage cable system business in a €836 million ($934 million) deal.
The business is part of ABB’s Power Grids division, which is currently undergoing a strategic review.
ABB’s cable system business offers turnkey solutions including design, engineering, supply, installation, commissioning and service. The transfer of assets also includes a new cable-laying vessel, currently under construction.
Ulrich Spiesshofer, ABB’s CEO, said: “We are combining two strong cable portfolios rooted in a shared Nordic heritage that will be more competitive on a larger scale under NKT Cables’ ownership, while maintaining access to supply through a long-term strategic partnership.”
Michael Hedegaard Lyng, President and CEO of NKT Cables, said: “ABB’s high-voltage cable business will add considerable strength to our portfolio and bring us a world-class manufacturing operation. We look forward to ramping up our long-term partnership that will serve future projects all around the world.”
ABB’s cable system business had adjusted standalone revenues of $524 million in 2015, employing around 900 people, according to the company.
The transaction is anticipated to close in Q1 2017, subject to regulatory clearances and fulfilment of the closing conditions.
NKT Cables designs, manufactures and supplies power cables for low, medium and high-voltage solutions mainly in the Alternating Current (AC) area.