Conservative · Stocks to Consider and Updates

ABB Sells Power Grid Business

 Swiss-based ABB Ltd. (NYSE: ABB – 19.31) said its engineering group will now focus on digital industries and simplify its business after selling an 80 percent stake in its power grids business to Japanese firm Hitachi. The Zurich-headquartered company, which said the deal is expected to close by the first half of 2020 pending approvals, is seeking to shape four key businesses in the fields of electrification, industrial automation, robotics and discrete automation and motion. The acquisition valued this unit at $11 billion. Proceeds of the $7.6 billion to $7.8 billion from the deal will be returned to shareholders via buybacks and invested in new technologies. The beaten down shares, currently yielding 4.2%, can continue to be held for long-term recovery.

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