By Kim Richters 
 

ABB Ltd. (ABBN.EB) said Thursday that it is selling its stakes in two Chinese companies to Shanghai Guangdian Electric Group Co. (601616.SH), its joint-venture partner for the two businesses.

The Swiss engineering company said it will divest all of its shares in the electrification businesses Shanghai ABB Breakers Co. and Shanghai ABB Guangdian Electric Co. It currently holds a 60% stake in the two companies.

"The divestiture will reduce the complexity of the electrification business in China and improve our focus in this key market," said Tarak Mehta, president of ABB's electrification business.

The company originally took over the stakes last year, when acquiring GE Industrial Solutions, it said.

ABB didn't comment on the financial terms of the deal, which is expected to close in the fourth quarter of the year.

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

October 31, 2019 05:54 ET (09:54 GMT)

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