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ABB - Abb News Story

$32.57 -0.8  -2.4%

Last Trade - 12/05/21

Sector
Industrials
Size
Large Cap
Market Cap £47.50bn
Enterprise Value £48.76bn
Revenue £18.97bn
Position in Universe 189th / 6853

UPDATE 1-Decentraliser Rosengren is ideal man to transform ABB, says chairman

Mon 12th August, 2019 7:47am
(Adds comments from biggest investor, background, analysts,
shares)
    By John Revill
    ZURICH, Aug 12 (Reuters) - ABB  ABBN.S  Chairman Peter Voser
said he was convinced he had got the right man to transform the
Swiss engineering group after it announced Sandvik  SAND.ST 
boss Bjorn Rosengren would become its next chief executive.
    Rosengren will take over at the Zurich-based maker of
industrial drives and robots in March, the company said on
Sunday, with Voser reverting to his position as chairman.
 urn:newsml:reuters.com:*:nL4N25708O
    ABB, whose previous CEO Ulrich Spiesshofer left suddenly in
April, is in the middle of overhauling its business following
years of lacklustre profit and bungled acquisitions.
    "As my successor as CEO, Bjorn Rosengren is the ideal
candidate to take ABB forward, together with our strong team on
the Executive Committee. He understands how to empower people to
perform and create long-term value," Voser said in a tweet on
Monday.
    During his four years at Sandvik, Rosengren decentralised
the operations of the metal-cutting tools and mining gear maker
and sold off underperforming businesses. 
    ABB, whose shares have lost 14% of their value over the last
five years, is selling its power grids business to Hitachi and
last month announced a deal to quit the solar energy inverters
business.  urn:newsml:reuters.com:*:nL8N24A0GW
    Voser, a former CEO of oil major Shell  RDSa.L , has
launched a review of businesses which generate $3 billion of
revenue, or 11% of ABB's total, which could be improved or sold.
    Analysts were positive about the appointment, with ABB
shares indicated 1.2% higher in premarket activity.
    "With the appointment of Rosengren, ABB will have a CEO with
a proven track record and a strong reputation in the capital
markets for delivering operational improvement," said Alexander
Virgo at Bank of America Merrill Lynch.
    "In our view, his success at Sandvik in implementing a
decentralised business model should make him a good match for
ABB, which is seeking to make a fundamental shift in corporate
culture following the sale of Power Grids."
    ABB's largest shareholder Investor AB  INVEb.ST  said it was
pleased with the appointment of Rosengren, who before Sandvik
was CEO of Wartsila  WRT1V.HE  which makes and services power
sources for the marine and energy markets.
    "From his previous leading roles in several companies, he
has a proven track record in driving a decentralised culture,
improving performance and delivering value," said Johan
Forssell, CEO of Investor, which holds 11.2% of ABB.
    Activist shareholder Cevian Captital, ABB's second-biggest
investor which campaigned for power grids to be sold, said: "We
fully support the appointment of Bjorn Rosengren ... He has the
right experience and leadership style to successfully drive
ABB’s transformation and strategy."

 (Reporting by John Revill
Editing by Tassilo Hummel and David Holmes)
 ((John.Revill@thomsonreuters.com; +41 58306 7022; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))
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