ABB Sells Unit to NKT Cables in $934 Million Deal

Zurich—ABB Ltd. said Wednesday that it will sell its global high-voltage cable system business to NKT Cables in a deal that has a total enterprise value of €836 million ($934 million).

The deal is part of a broader strategic review of ABB's power grids unit, the company said. ABB shares rose 0.4% in early trading Wednesday.

Two top shareholders of ABB, Swedish activist fund Cevian Capital and U.S.-based Artisan Partners have urged the Swiss engineering giant to spin off its power-grids unit to raise shareholder value and streamline operations, The Wall Street Journal reported last week.

"The combination of our niche cable system business with the strength of NKT Cables demonstrates our commitment to active portfolio management, a key element of our Next Level strategy," ABB chief executive Ulrich Spiesshofer, in a statement. The company said it would report on the strategic review of its power grids division at its Capital Markets Day on Oct. 4.

NKT Cables employs about 3,200 people with production facilities in Europe and China. It had 2015 revenue of €1.2 billion.

The transaction is expected to close in the first quarter of 2017.

Eyk Henning contributed to this article.

Write to Brian Blackstone at [e-mail]

(END) Dow Jones Newswires

September 21, 2016 05:05 ET (09:05 GMT)

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