China, Beijing: The Chinese state grid operator’s hunt for $50 billion in overseas assets makes it a potential bidder for ABB’s power grids business in what would be another step towards creating a global energy internet.
As ABB announced $1 billion in cost cuts, possible layoffs and a fusion of its Power Systems business with Power Products, which makes transformers, a review on whether to keep this newly created Power Grids unit and its $12.6 billion in revenue is under way.
With the investor pressure building up to improve margins in the medium term after trimming revenue growth targets this week, ABB’s CEO Spiesshofer said that all options are open for Power Grids — a sale, breakup or acquisitions, reports Shanghai Daily.
If it is decided to unload the unit, potential buyers would include State Grid Corp of China (SGCC) looking to amass $50 billion in overseas assets by 2020.
According to Shanghai Daily, other potential buyers in Asia, Toshiba Corp and Mitsubishi Heavy, declined to comment on ABB, while a spokesman for South Korea’s Hyundai Heavy Industries said the company was currently not interested in the unit.
Source: Shanghai Daily