ABB selling part of its oil, gas and petrochemicals division
ABB recently agreed to sell the upstream part of its oil, gas, and petrochemicals division to a newly incorporated company formed by a private equity investors' consortium, including Candover Partners Ltd, 3i, and J.P. Morgan Partners. ABB expects to record a small capital gain on the initial sale price of $925 million.
Zurich, Switzerland — ABB recently agreed to sell the upstream part of its oil, gas, and petrochemicals division to a newly incorporated company formed by a private equity investors’ consortium, including Candover Partners Ltd, 3i, and J.P. Morgan Partners. ABB expects to record a small capital gain on the initial sale price of $925 million. The agreement also includes a potential deferred consideration of an additional amount of up to $50 million.
“This divestment agreement marks a further, decisive step to increase the focus on our core businesses and finalize our divestment program,” says Peter Voser, ABB’s chief financial officer. The closing is expected in mid-2004. ABB is selling its U.S.-based Vetco Gray unit and its ABB Offshore Systems business, headquartered in Norway. These upstream businesses are active in more than 30 countries and employ some 7,500 people, mostly in Brazil, Canada, Norway, Singapore, the U.K., and the U.S. The two businesses had total revenues of $1.7 billion in 2002.
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