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MarketScreener Homepage  >  Equities  >  Swiss Exchange  >  ABB Ltd    ABBN   CH0012221716

ABB LTD

(ABBN)
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ABB division attracts interest from industry buyers -sources

11/19/2020 | 02:20pm EST
Logo of Hitachi ABB is seen in Zurich

FRANKFURT/ZURICH, Nov 19 (Reuters) - ABB's clutch and transmission manufacturer Dodge had already attracted interest from potential bidders before the Swiss engineering group announced it was exiting the business, people familiar with the matter told Reuters on Thursday.

Dodge, which has annual sales of $575 million, is one of three businesses put up for disposal on Thursday, along with ABB's power conversion and turbocharger units.

Several industry peers looked into buying U.S.-based Dodge before it was formerly put up for disposal, and are expected to be in the running when ABB starts its auction early next year, the sources said.

The business, which has profit margins well above the group target level of 14% to 16%, has attracted interest from U.S. engineering companies Timken, Regal Beloit and Rexnord, the sources said.

German automotive supplier Schaeffler and Swedish ball bearing manufacturer SKS are also in the frame, along with financial investors, they added.

Dodge, which makes products including bearings used in industrial food processing operations and belted drives for conveyors in giant coal mines, is likely to carry a price tag of around $1.5 billion, two people familiar with the industry told Reuters earlier, and could be the first of ABB's business to be sold.

The power conversion business, which has sales of $375 million, is likely to fetch around half a billion dollars, the people said. ABB had already tried to sell the business last year without success.

Vertiv is the business's main peer in the market, but any offer could run into anti-trust issues, a source said.

ABB's turbocharger business could raise the most money for the Zurich-based company, with an expected price tag of $1.5 to $2 billion.

Chief Executive Bjorn Rosengren said he would consider floating the business on the Six Swiss exchange. Two people familiar with the matter told Reuters that Finland's Wartsila and Sweden's Alfa Laval were two companies that could potentially be interested, although they had not expressed an interest yet.

ABB declined to comment. Timken, Regal Beloit and Rexnord did not immediately respond to requests for comment. Schaeffler did not immediately respond outside of regular European business hours. SKS declined to comment.

No banks have so far been given mandates to handle the disposals, the sources added.

(Reporting by John Revill and Arno Schuetze; Editing by Kirsten Donovan)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AB SKF -1.22% 234.8 Delayed Quote.11.39%
ABB LTD 0.68% 26.71 Delayed Quote.7.37%
ALFA LAVAL AB -0.46% 236.4 Delayed Quote.4.95%
GOLD -0.79% 1854.8 Delayed Quote.-1.47%
REGAL BELOIT CORPORATION -0.01% 133.6 Delayed Quote.10.89%
SCHAEFFLER 0.72% 6.295 Delayed Quote.-8.56%
SILVER -1.74% 25.4685 Delayed Quote.-1.89%
VERTIV HOLDINGS CO. -2.91% 20.01 Delayed Quote.10.39%
WÄRTSILÄ OYJ -1.65% 8.704 Delayed Quote.8.59%
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Financials (USD)
Sales 2020 25 863 M - -
Net income 2020 5 516 M - -
Net Debt 2020 1 673 M - -
P/E ratio 2020 10,0x
Yield 2020 3,15%
Capitalization 54 990 M 62 102 M -
EV / Sales 2020 2,19x
EV / Sales 2021 2,09x
Nbr of Employees 110 000
Free-Float 84,2%
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Technical analysis trends ABB LTD
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TrendsBullishBullishBullish
Income Statement Evolution
Consensus
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Mean consensus HOLD
Number of Analysts 24
Average target price 27,82 $
Last Close Price 26,71 $
Spread / Highest target 38,7%
Spread / Average Target 4,15%
Spread / Lowest Target -22,0%
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Managers and Directors
NameTitle
Björn Klas Otto Rosengren Chief Executive Officer
Peter R. Voser Chairman
Timo J. Ihamuotila Chief Financial Officer
Jacob Wallenberg Vice Chairman
Matti Juhani Alahuhta Independent Non-Executive Director
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