"Over the past two years, ABB has become faster, leaner and more efficient. With the third stage of our next-level strategy, we are now systematically continuing our successful transformation and strengthening our position as a global technology company," commented Ulrich Spiesshofer, CEO of ABB, on the restructuring that will take place on January 1, 2017. Specifically, the Group intends to focus on four divisions: Electrification Products, Robotics and Drives, Industrial Automation and Power Grids. The individual divisions should be able to act even more entrepreneurially within the ABB Group. In this context, strategic acquisitions are planned as well as the separation of peripheral businesses, such as the recently announced sale of the cable business to NKT Cables. Last but not least, ABB intends to operate under a single corporate brand in the future and thus consolidate all ABB brands worldwide under one roof. This process is expected to take up to two years.

What the restructuring means for the individual divisions:

Electrification products

All of the Group's electrification offerings will be bundled in this unit, in particular through the integration of parts of the former Industrial Automation and Drives division. The areas of charging infrastructure for electric vehicles, solar inverters and uninterruptible power supplies will be transferred from the Industrial Automation and Drives Division to the Electrification Products Division and will provide a platform for future growth within the division.

Robotics and drives

ABB's offering in industrial motors and drives and its powerful robotics business are the central building blocks of this newly formed division, which will emerge from the former Industrial Automation and Drives division. The division will focus on the fast-growing robotics market. ABB currently sees itself as the second largest supplier in this highly attractive market and aims to become the number one in the long term.

In addition, ABB intends to invest in the industrial drives and motors business in order to expand its leading market position. To this end, the company will focus on fast-growing segments, light industry and growth markets such as Asia.

Industrial automation

The new Industrial Automation division has emerged from the former Process Automation division. This includes the process control technology area with its software and service offerings. The company has a unique breadth of industry knowledge that enables it to become the central interface in the control room of numerous industries, such as pharmaceuticals, mining, shipping or oil and gas.

Power grids

Following a comprehensive strategic portfolio review, ABB's Board of Directors and Executive Committee have concluded that the transformation of the Power Grids division under the ABB umbrella creates the most value for shareholders compared to other options such as a sale, IPO, spin-off or joint venture. Important factors in the decision-making process included the attractiveness of the market, the existing and future offerings of the product portfolio, the opportunities of the business model, the question of the best owner and alternative options to create value for ABB shareholders. This review was accompanied and supported by independent analyses by McKinsey and the independent financial experts from Credit Suisse and Goldman Sachs.