- The deal is expected to be completed sometime during the first quarter of 2020
- Co expected to take an after-tax non-operational charge of approximately $430 million in the second quarter of 2019
Switzerland based ABB will be exiting its solar inverter business in India by selling the stake to Italian company FIMER S.p.A.
Both the companies have inked an agreement for the transaction and the deal is expected to be completed sometime during the first quarter of 2020. The valuation of the deal was not known.
“The transaction will enhance the future prospects of the solar inverter business and will enable ABB to focus its business portfolio on other growth markets,” read ABB’s statement.
The deal includes the solar inverter business from Power-One which was acquired by ABB’s Discrete Automation and Motion division in 2013. The business offers a comprehensive portfolio of products, systems, and services for different types of solar installations. It is currently within ABB’s electrification business and achieved revenues of approximately $290 million in 2018.
ABB’s market position
According to a recent Mercom report, ABB was the top supplier of solar inverters during the calendar years 2017 and 2018.
ABB’s solar inverter business is spread across 30 countries with manufacturing and research & development sites located in Italy, India and Finland.