Danish manufacturer NKT Cables has agreed to acquire ABB’s global high-voltage cable system business for €836m ($934m).
The business is part of ABB's power grids division, which is currently undergoing a strategic review. NKT Cables' acquisition will help it cater to the growing demand for long-distance power transmission systems.
ABB's 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 Danish company designs, manufactures, and supplies power cables for low, medium, and high-voltage solutions.
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.
“We look forward to ramping up our long-term partnership that will serve future projects all around the world.”
The transaction is expected to close in Q1 of next year, which will be subject to regulatory clearances and fulfillment of the closing conditions.