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ABB Considering Sale of Some Electric Mobility Assets

(Bloomberg) — ABB Ltd. is considering selling part of its E-mobility business, which includes electric-vehicle charging stations worldwide as well as research and development facilities in China, according to people familiar with the matter.

The Swiss firm is working with China International Capital Corp. on a possible sale and has sounded out potential buyers, the people said. Chinese companies looking to expand globally have shown preliminary interest, the people said, asking not to be identified discussing private information. 

A sale process could start this month and the business might fetch anything between $100 million and $200 million, the people said. Deliberations are ongoing and ABB may decide not to go ahead with a sale, the people said.  

The portfolio of assets includes ABB E-mobility’s direct current charger business in China and its global alternating current charger operations, the people said. 

Representatives for ABB and CICC declined to comment. 

ABB says it has sold more than 1 million direct and alternating current EV chargers worldwide. The company doubled its battery-charging manufacturing capacity with the opening of a plant in Valdarno, Italy, in 2022. It also has facilities in the US and a stake in Chinese EV charging software firm ChargeLab. 

ABB would join other global businesses across sectors that in recent years have been trimming their portfolio and presence in China.

ABB shares have gained 36% this year, and were given a boost in April when the industrial company raised its profitability outlook for the year after stronger-than-expected orders. Chief Executive Officer Björn Rosengren said its business in China is showing signs of improvement, with ABB expecting the key region to return to growth.

(Updates with context on ABB in last paragraph.)

©2024 Bloomberg L.P.

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