Report
Denise Molina
EUR 100.00 For Business Accounts Only

'Tis the Season to Break Up Conglomerates: ABB's Power Grids Sale Welcome News; Shares Attractive

ABB's sale of 80% of its power grids division to Hitachi offers modest upside to our fair value estimate, and we expect to make adjustments that will result in less than a 5% increase to our CHF 25 and $25.40 fair value estimates. The sale is welcome news, given that power grids muddied the investment story as a division that offered no real synergies with the more attractive automation and low-/medium-voltage portfolio. The deal price of an $11 billion enterprise value (based on 100% of the div...
Underlying
ABB Ltd.

ABB specializes in power and automation technologies. Co. provides a broad range of products, systems, solutions and services that are designed to boost industrial productivity, increase power grid reliability, and enhance energy efficiency. Co.'s automation businesses serve a full range of industries with process optimization, control, measurement and protection applications. Co.'s power businesses focus on power transmission, distribution and power-plant automation, and support electric, gas and water utilities, as well as industrial and commercial customers.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Denise Molina

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