NKT Cables is acquiring ABB’s global high-voltage cable system business with a total enterprise value of EUR 836 million (USD 934 million).
The business is part of ABB’s Power Grids division, which is currently undergoing a strategic review.
“We are combining two strong cable portfolios rooted in a shared Nordic heritage that will be more competitive on a larger scale under NKT Cables’ ownership, while maintaining access to supply through a long-term strategic partnership,” said ABB CEO Ulrich Spiesshofer.
“ABB’s high-voltage cable business will add considerable strength to our portfolio and bring us a world-class manufacturing operation. We will leverage the technology, domain competence and highly skilled workforce to grow this business,” said Michael Hedegaard Lyng, president and CEO of NKT Cables. “We look forward to ramping up our long-term partnership that will serve future projects all around the world.”
ABB’s cable system business, with manufacturing and R&D capabilities for high-voltage submarine and underground cables in Karlskrona, Sweden, offers turnkey solutions including design, engineering, supply, installation, commissioning and service. The transfer of assets also includes new cable-laying vessel, currently under construction.
“As part of the strategic partnership, ABB and NKT Cables will work together on future projects to access market opportunities in areas like subsea interconnections and direct current (DC) transmission links,” said Claudio Facchin, president of ABB’s Power Grids division.
The transaction is anticipated to close in Q1 2017, subject to regulatory clearances and fulfillment of the closing conditions.