ASEA AB of Västerås, Sweden and BBC Brown Boveri Ltd of Baden, Switzerland, announce plans in August 1987 to merge their operations to form ABB Asea Brown Boveri Ltd, headquartered in Zurich, Switzerland. Each parent company is to hold 50 percent of the new company.
1988
Operations begin January 5, 1988. In the first year, some 15 acquisitions are made, among them the environmental control group Fläkt AB of Sweden, the contracting group Sadelmi/Cogepi, Italy, and railway manufacturer Scandia-Randers A/S of Denmark.
1989
In December, ABB finalizes the purchase of the worldwide power transmission and distribution operations of Westinghouse Electric Corp. of the U.S. Also in December, ABB announces the agreement to buy Stamford, Ct.-based Combustion Engineering Group. In total, ABB purchases about 40 companies in 1989.
1990
ABB begins an aggressive program of expansion in Central and Eastern Europe and prepares for expansion into Asia. The rate of acquisition slows in the U.S. and Western Europe, where a period of consolidation and restructuring begins.
1991
Investments continue in Central and Eastern Europe, where ABB employs about 10,000 people by year end. Extensive restructuring positions the company to meet the demands of recession economies in North America and parts of Europe. Research & Development spending increases by 20 percent
1992
Recession management is accelerated and total employment reduced by 14,000. Employment in Central and Eastern Europe rises to 20,000 people in 30 companies. In Asia, more than 20 new manufacturing and service units are created through joint ventures, acquisitions, and greenfield investments.
1993
The Group continues its strategy of targeted expansion in Europe (including the former Soviet Union), the Americas, and Asia Pacific. ABB introduces the GT24/GT26 gas turbine technology opening new opportunities on the global market for high-efficiency, low-emission turbines.
1994
ABB emerges from a two-year consolidation phase to begin new volume and profit growth. In Western Europe and North America, the focus is on the fast-growing service and retrofit markets, while demand for new infrastructure drives demand growth in emerging markets. In Asia, ABB has 30,000 employees and 100 plants, engineering, service and marketing centers.
1995
ABB continues to expand its local presence in Asia and Central and Eastern Europe through internal growth, acquisitions and majority joint ventures. ABB announces the merger of its Transportation segment into a 50-50 joint venture with Daimler-Benz AG of Germany, effective January 1, 1996. ABB selected as Europe's best company in technology and innovation management.
1996
Demand in emerging markets continues to drive growth. Employment in these countries rises by 10,000, while selective downsizing continues in Western Europe and North America. ABB completes the merger at the Board level by integrating its parent companies' Boards into the ABB Group Board. Göran Lindahl is named ABB President and CEO, effective January 1, 1997, succeeding Percy Barnevik, who becomes non-Executive Chairman of the ABB Board of Directors.
1997
ABB continues to reduce employment in Western Europe and add employees in various emerging markets and Central and Eastern Europe. Employment also increases in growing businesses, such as oil, gas and petrochemicals, automation and service-related activities. ABB moves early to adjust its cost base in Western Europe and the U.S. - including the reduction of 12,000 jobs - and accelerates expansion in Asia to improve future competitiveness.
1998
ABB took a number of significant steps in 1998 to position itself for improved growth. ABB acquired Elsag Bailey Process Automation to position itself as a leader in the global industrial automation market. It was the biggest acquisition in ABB's history. The company made a number of other strategic acquisitions, and in early 1999 divested its 50-percent share in Adtranz, its rail transportation joint venture with DaimlerChrysler. The industrial segments were realigned to better match changing market conditions and the regional management layer was dissolved to speed decision making. The restructuring announced in late 1997 was about 90 percent complete in 1998.
1999
Shareholders accepted an offer to replace ABB’s four-class share structure with a single class share. Shares in the new Zurich-based ABB Ltd began trading on the Swiss stock exchange and stock exchanges in Stockholm, London and Frankfurt at the end of June. ABB is now preparing for a U.S. listing. ABB accelerated its shift to a knowledge and service company. Strategic acquisitions included a major Brazilian industrial service company, U.S. and European financial services companies, and an oil and gas equipment supplier in Argentina. ABB contributed most of its power generation businesses to a 50-50 joint venture with ALSTOM of France, creating the world’s largest power generation supplier—ABB ALSTOM POWER. ABB divested its 50-percent share in its rail joint venture Adtranz to DaimlerChrysler of Germany, and sold its standard cables business. In December, ABB announced its intention to divest its nuclear power activities.