ABB agrees sale of part of Oil, Gas & Petrochemicals division

ABB has finalized the agreement to sell the upstream part of its Oil, Gas and Petrochemicals division to a newly incorporated company formed by a private equity investors' consortium of Candover Partners Ltd, 3i and JP Morgan Partners. The initial sale price is expected to be around US$ 925 million. A preliminary agreement on the deal was announced in late October 2003.

The divestment is subject to the customary regulatory approvals and closing conditions, as well as the satisfactory completion and disposition of compliance matters under review. The closing is expected mid-year 2004.

ABB is selling its United States-based Vetco Gray unit and its ABB Offshore Systems business, headquartered in Norway. These upstream businesses are active in more than 30 countries and employ some 7,500 people, mainly in Brazil, Canada, Norway, Singapore, the United Kingdom and the U.S., with total revenues in 2002 of US$ 1.7 billion.

Not included in the sale is ABB Lummus Global, which is mainly a downstream business. ABB said it is continuing negotiations with several parties to sell Lummus Global, and expects to complete the sale in 2004.

Added to site on 19/01/04

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