The transaction enables ABB’s electrification business to improve the focus of its business portfolio on priority growth markets
Switzerland-based ABB has completed the sale of its solar inverter business to Italian firm FIMER.
The deal between ABB and Fimer is expected to strengthen the future prospects of solar inverter business, while enabling ABB to focus on its business portfolio in other growth markets, the company said.
ABB electrification business president Tarak Mehta said: “The completion of this divestment is another step forward in our strategy of systematic portfolio management.
“It strengthens our competitiveness and allows us to focus on other growth segments. ABB will continue to integrate solar power into a range of solutions for smart buildings, energy storage and electric vehicle charging throughout intelligent low- and medium-voltage offering.”
The solar inverter business of ABB has a workforce of about 800, spread across in more than 30 countries, with manufacturing and R&D sites located in Italy, India and Finland.
It also includes the solar inverter business from Power-One which was acquired by the company’s Discrete Automation and Motion division in 2013. The business provides a complete portfolio of products, systems, and services for different types of solar installations.
ABB to divest Power Grids business to Hitachi in 2020
With operations in more than 100 countries, ABB currently employs about 144,000 peoples.
The company said that it would divest Power Grids business to Hitachi in 2020.
In December 2018, the Swiss company had agreed to sell an 80.1% stake in its Power Grids unit to Japanese conglomerate Hitachi for about $6.4bn, excluding debt.
Its Power Grids business consists of four segments, which includes Grid Automation, Grid Integration, High Voltage Products and Transformers.
Hitachi was also given an option to acquire the remaining 19.9% stake in Power Grids, which can be exercised three years after closing of the original deal.