The sale is subject to regulatory approvals and approval by CB&I’s shareholders.
Under the terms of the agreement, Netherlands-based CB&I will purchase the entire Lummus Global business. Lummus Global employs about 2,400 people and reported revenues of $988m in 2006. It is engaged in process technologies, project management, engineering, procurement and construction-related services.
‘The divestment of Lummus Global is the final milestone in our strategy of focusing on our highly successful core business in power and automation technology,’ said Fred Kindle, ABB President and CEO.
In connection with the divestment of Lummus Global, ABB has discovered what it describes as ‘certain suspect payments’ in a number of countries.
According to a statement, ABB reported these suspected payments to the US Department of Justice and the Securities and Exchange Commission, and is cooperating fully with the authorities, while continuing its internal investigations and compliance reviews. ABB retains liability for potential fines and penalties.