ABB completes sale of Lummus Global
ABB has completed the sale of its downstream oil and gas business Lummus Global to Chicago Bridge & Iron Co.
ABB has completed the sale of its downstream oil and gas business Lummus Global to Chicago Bridge & Iron Co. 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.
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. ABB’s automation and power businesses remain committed to the oil and gas sector and will continue to develop their long-standing relationships with these customers.
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Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.
But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.
Read more: 2015 Salary Survey