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ABB set to pay $430 million to sell its solar business to an Italian company

ABB set to pay $430 million to sell its solar business to an Italian company

Earlier in the day, On Tuesday, 09 July, Swiss Engineering company, ABB revealed that for transferring its solar inverted business to FIMER SpA, it will be paying the Italy based company almost $470 million in separation costs and charges.

Back in 2018, as per reports, ABB’s solar inverted business roughly made $290 million in sales.

As per reports, in the second quarter of 2019, the company based out of Zurich expects to receive nearly $430 million in after-tax non-operational charge out of which three quarters being paid to FIMER in cash.

Sources close to the matter, also said that ABB expects to pay up almost $40 million in separation costs.

It is expected that both parties will officially close the deal within the first quarter of 2020.

Initially, ABB made its entry into the inverted business back in 2013 when it purchased the U.S. solar energy company Power-One Inc for a reported sum of $1 billion.

As per reports, this move was a major gamble taken by ABB, as the Zurich based company forecasted that growth in emerging markets would revive a sector withered by decreasing demand and over-capacity.

Notably, ever since being appointed as ABB’s chief executive back in April, the solar inverters exit marks the first major decision taken by Chairman Peter Voser, who was the former head of oil company Royal Dutch Shell.

Back in December 2018, in an official release, ABB had revealed that it had reached an agreement with Hitachi to sell its Power Grids business.