ABB to divest cable business to NKT Cables

by Sep 21, 2016

NKT Cables acquires ABB’s global high-voltage cable system business with a total enterprise value of 836 million euros (US$934 million). NKT Cables designs, manufactures and supplies power cables for low-, medium- and high-voltage solutions mainly in the Alternating Current (AC)-area. It has major production facilities in Europe and China as well as sales offices around the world, and employs around 3,200 people.

Impression: This marks a shift for ABB from the turnkey approach they have used in many markets, especially in HVDC applications. There lies ancillary benefits to other cable companies such as Nexans as ABB will be more willing to source from them. Under this paradigm, there may be a more competition for mindshare for cable partners such as EPC and converter station manufacturers with Siemens and GE Grid/Astom being the primary actors in this space.

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