ABB to retain power grids division
Posted on 26 Oct 2016 and read 2545 times
ABB Ltd (
new.abb.com) has said that it will keep and expand its power grids division, despite data for 2015 showing it was the least profitable of ABB’s four divisions, with operational earnings before interest, tax and amortisation making up 7.5% of sales. The announcement is in defiance of Swedish share-holder Cevian Capital AB’s calls for the Swiss engineering company to spin off the unit.
ABB’s decision brought to light divisions between the company’s biggest shareholders, with Investor AB backing the move and Cevian Capital co-founder Christer Gardell calling it “unfortunate.” ABB’s CEO and Cevian have been arguing over the structure of the Swiss maker of power and automation equipment for some considerable time, according to sources.