ABB completed the divestment of its high-voltage cables and cable accessories businesses to NKT Cables, on Wednesday, 1 March.
The completion of the EUR 836 million deal, announced back in September 2016, comes after the European Commission ruled that the merged entity, said to be the world’s leading power cable company, would continue to face effective competition in Europe.
By combining two strong cable portfolios while maintaining access to supply through a long-term strategic partnership, a more competitive cable business on a larger scale is created under NKT Cables’ ownership, ABB said.
As part of the strategic partnership, ABB and NKT Cables will work together on future project opportunities and R&D.
“We are pleased to close the divestment with NKT Cables, an experienced specialist in this market, with a long and successful history in the high voltage cable industry. This transaction is combining two highly complementary cable portfolios and is expected to lead to higher competitiveness and even better service for our global customers” said Claudio Facchin, president of ABB’s Power Grids division.
“We look forward to building on our new business relationship in the long-term strategic partnership between ABB and NKT Cables.”
ABB’s cable system and the cable accessories business offers turnkey solutions including design, engineering, supply, installation, commissioning and service.
It employs around 1,000 people, and has manufacturing and R&D capabilities for high-voltage submarine and underground cables in Karlskrona, Sweden. The cable accessories business is located in Alingsås, Sweden.
The transfer of assets also includes a new cable-laying vessel, currently under construction.