ABB aims to divest turbocharging business by end-Q2
ZURICH (Reuters) -Swiss engineering company ABB still intends to divest its turbocharging business and aims to do so before the end of the second quarter, Chief Executive Bjorn Rosengren said on Thursday.
“While we still want to exit the turbocharging business – Accelleron – we will not rush to make the final decision. We aim to do so before the end of Q2,” Rosengren said in comments prepared for the company’s annual general meeting.
“We prefer to spin off Accelleron on the Swiss stock exchange and we would of course seek shareholders’ approval for this,” Rosengren added.
ABB rebranded the business Accelleron in February when it said it expected to make the final decision on whether to sell or spin it off towards the end of the first quarter.
The separation of the business, which competes with Britain’s Napier, part of Wabtec, Germany’s KBB and Japan’s Mitsubishi Heavy Industries, is part of CEO Rosengren’s plan to focus ABB on electrification and automation.
The turbocharging business employs over 2,300 people and had around $750 million in sales in 2021.
ABB did not give any figures on profitability, but has said previously that the business has an “attractive” profit margin.
Rosengren has previously said a spinoff onto the SIX Swiss Exchange during the second quarter of this year was the most likely outcome.
In Thursday’s prepared remarks, he said ABB remained committed to its plans to exit its Power Conversion business, adding that it planned an initial public offering of its E-mobility business.
“We intend to list a minority part of this business on the Swiss stock exchange”, he added of the E-mobility unit.
Source: Read Full Article