Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
ABB at least $1 billion to spend on deals as it looks to boost its revenues by being more active in M&A, chief financial officer Timo Ihamuotila said on Thursday.
The Swiss engineering firm said it would target smaller and mid-sized companies but did not rule out larger deals.
“It’s fair to say that we have not allocated that much capital on acquisitions during the last few years, but we would expect that to go up,” said Timo Ihamuotila after ABB reported mixed third-quarter results.
“We clearly have that today at least a billion to spend on M&A or acquisitions,” he added.
CEO Morten Wierod also said he was confident about future business opportunities in the United States, ABB’s biggest market, regardless of whether Kamala Harris or Donald Trump wins next month’s presidential election.
“No matter which candidate wins, the US for US initiative will continue,” he said. “It’s driving the onshoring of production back to the United States or North America.”
(By John Revill; Editing by Tommy Reggiori Wilkes)
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