ABB (ABB, $$19.4) To Sell Power Grid Unit To Hitachi, At $11 Billion Value; Shareholders to Get Paid From Deal

ABB will sell a majority stake in its Power Grid division to Japan's Hitachi. 

ABB Power Grid division makes transformers and converters, and is the company’s least profitable business. The sale to Hitachi values the unit at around $11 billion. ABB shareholders would receive buybacks and/or other payments from the deal’s cash proceeds of $7.6-7.8 billion. After the deal, ABB is expected to focus more on its automation business.

ABB will have four divisions after the transaction: Electrification, Industrial Automation, Robotics & Discrete Automation, and Motion, which includes motors and drives."Our four newly shaped businesses, each a global leader, will be well aligned to the way our customers operate and focus stronger on emerging technologies such as artificial intelligence," ABB Chief Executive Ulrich Spiesshofer said. After selling the majority stake,the company will retain the remainder of the Power Grid business - with an option to sell that as well to Hitachi after three years.

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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.