The sale is a part of ABB’s strategic review of its Power Grids division.
ABB HV Cables is engaged in providing turnkey solutions including design, engineering, supply, installation, commissioning and service.
Under the deal, ABB will sell its high-voltage cable technology and manufacturing as well as service footprint to NKT Cables.
The deal also includes the transfer of ABB’s new cutting-edge cable-laying vessel, currently under construction.
ABB CEO Ulrich Spiesshofer said: “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.
“The combination of our niche cable system business with the strength of NKT Cables demonstrates our commitment to active portfolio management, a key element of our Next Level strategy.”
The combined business is expected to create a leading onshore and offshore high-voltage power cables company, NKT Cables said.
NKT Cables president and CEO Michael Hedegaard Lyng said: “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.”
ABB’s cable system business has manufacturing and R&D capabilities for high-voltage submarine and underground cables in Karlskrona, Sweden.
Scheduled to be completed in first quarter of 2017, the transaction is subject to regulatory clearances.
Meanwhile, NKT Cables and ABB Group have signed an agreement for long-term strategic partnership to access market opportunities within interconnectors and onshore power transmission projects.
Image: NKT Cables will acquire ABB HV Cables to create a leading on- and offshore HV power cables company. Photo: courtesy of nkt cables Group GmbH.
