ABB to Form Joint Venture With SNC-Lavalin
By Alberto Delclaux
Swiss industrial conglomerate ABB Ltd (ABBN.EB) said Wednesday that it will form a joint venture with Canada's SNC-Lavalin Group Inc (SNC.T) to develop electric-substation infrastructure projects.
SNC-Lavalin will have a majority and a controlling interest in the new business, ABB said, adding that the transaction is expected to close in 2018.
The company also said that the previously-announced integration of its oil-and-gas engineering, procurement and construction--or EPC--activities into a joint venture with Saudi Arabia's Arkad Engineering & Construction Company should be completed before the end of the year, representing a non-operational pre-tax charge of $75 million in fourth-quarter results.
Arkad will have a majority and a controlling interest in the new joint venture company.
ABB has revised its fourth-quarter target for operational earnings before interest, tax and amortization downward by approximately $150 million, it added.
"We are taking decisive actions to complete our EPC business model change as we end our transition year," said ABB Chief Financial Officer Timo Ihamuotila. "These actions are in line with our strategy to shift our center of gravity towards strengthened competitiveness, higher growth segments and lower risk."
Turning to its robotics and motion unit, ABB said that it is winding down its full-train retrofit business beyond existing contractual commitments.
Write to Alberto Delclaux at firstname.lastname@example.org
(END) Dow Jones Newswires
December 20, 2017 02:02 ET (07:02 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.