ABB Ltd. (ABB) has entered into an agreement to acquire an Australian renewable power automation company, Powercorp. Based in Darwin, Powercorp has about 30 employees.
Powercorp is engaged in providing automation and intelligent control solutions for managing renewable energy generation in isolated grids, guarantying utility grade power quality and grid stability. Through this solution, isolated diesel powered grids are provided with very high levels of wind and solar power, which lowers the emission and need of fossil fuel.
The acquisition is directed to expand the company’s offering of control technologies for handling renewable energy sources integration. As for Powercorp, these solutions will reach expanded market and addition of ABB’s expertise will provide better solutions for renewable energy generation. The acquisition is expected to close before the end of 2011.
ABB Ltd.’s power and automation technologies offer a solution for sustainable development, thus helping to shield the world's resources. The company has a number of technologies for the solar power industry with a growing installed base. ABB Ltd. has witnessed improving signs in late-cycle power, with some recent large contracts.
However, ABB's results are likely to be adversely affected by macroeconomic weakness as more than 80% of the company's orders are derived from outside the US. A major competitor of ABB Ltd. is Siemens AG (SI).
Based in Zurich (Switzerland), ABB is a power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa.
We maintain a Zacks #4 Rank (short-term Sell recommendation) on ABB Ltd.
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