NKT Cables is acquiring ABB’s global high-voltage cable system business, with a total enterprise value of $934 million. According to ABB, the high-voltage cables business is part of its Power Grids division, which is currently undergoing a strategic review.
NKT Cables designs, manufactures and supplies power cables for low-, medium- and high-voltage solutions mainly in the Alternating Current (AC)-area. It has production facilities in Europe and China, as well as sales offices around the world.
“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,” said ABB CEO Ulrich Spiesshofer. “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.”
According to ABB, its high-voltage cable technology and manufacturing is complementary with NKT Cables’ activities, making the combined business ideally suited to serve global demand for long-distance power transmission cable systems.
“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,” said Michael Hedegaard Lyng, president and CEO of NKT Cables. “We look forward to ramping up our long-term partnership that will serve future projects all around the world.”