By Joshua Kirby

 

ABB Ltd. will spin off and separately list its turbocharging division Accelleron as the industrial group looks to focus on its core business, it said Wednesday.

The listing on the Swiss stock exchange of the business, formerly known as ABB Turbocharging, is planned for Oct. 3, and is subject to approval by ABB shareholders at an extraordinary general meeting to be held in September, the company said.

The spinoff will allow ABB shareholders to realize the full value of Accelleron, while the remaining company can focus on its core business and the trends of electrification and automation, the Zurich-based company said. With the spinoff, ABB shareholders will receive one Accelleron share for every 20 ABB shares held.

Accelleron produces turbochargers and large turbocharging components for engines, which enhance propulsion and increase fuel efficiency while reducing emissions, ABB said. The business made revenue of $756 million in 2021, with an operating margin of 25%, the company said.

 

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

 

(END) Dow Jones Newswires

July 20, 2022 12:01 ET (16:01 GMT)

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