Zurich, Switzerland, November 19 Power and automation technology group ABB has completed the sale of its downstream oil and gas business Lummus Global to Chicago Bridge & Iron Co. (CB&I) for an enterprise value of $950 million. ABB and CB&I announced the transaction in August. ABB has received net cash proceeds of approximately $800 million, which will be booked in the fourth quarter.
As previously communicated, the sale triggered an accelerated $204 million payment by ABB to the CE Asbestos PI Trust, a trust fund set up to cover the asbestos liabilities of Combustion Engineering. This payment will be also booked in the fourth quarter.
As reported in August, ABB retains liability for potential fines and penalties arising from suspect payments discovered in connection with the divestment of this business. ABB will continue cooperating with the authorities in this matter.
In recent years, the ABB Group has been successfully focusing on its strengths in power and automation technologies. ABBs automation and power businesses remain committed to the oil and gas sector and will continue to develop their long-standing relationships with these customers.