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© mucella1 dreamstime.com Electronics Production | October 04, 2016

ABB will not sell power grids business

ABB has launched what they call “Stage 3” in its Next Level strategy which aims to unlock value for customers and shareholders.
What this means is that the company will shape its divisions into four entrepreneurial units, and this includes continuing to transform the Power Grids division under ABB’s ownership.

ABB CEO Ulrich Spiesshofer said, “Over the last two years, ABB has become faster, leaner and more efficient. We have continuously improved margins and further strengthened our cash generation. In Stage 3 of our Next Level strategy, we are building on our successful transformation momentum and strengthening our position as a pioneering technology leader and global digital champion. With our four simplified, market-leading, entrepreneurial businesses, combined with “ABB Ability”, we address customers’ needs in the Energy and Fourth Industrial Revolutions in a more focused and agile way.”

ABB is shaping and focusing its divisional structure into four divisions: Electrification Products, Robotics and Motion, Industrial Automation and Power Grids, this will all become effective from the beginning of next year.

The units will benefit from sales collaboration orchestrated by regions and countries, the company writes in a press release. ABB will continue to strengthen its divisions through active portfolio management. This includes pursuing strategic additions, transforming business models and pruning non-core businesses.

Following a portfolio review, the Board and Executive Committee of ABB concluded that the transformation of Power Grids under ABB ownership has the possibility to unlock maximum shareholder value compared to other ownership options such as sale, IPO, spin-off or joint venture – and thus, it will stay within ABB.

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