ABB to sell investment management business

Sweden’s Skandinaviska Enskilda Banken will provide necessary economies of scale for global asset management

Zurich, Switzerland, August 28, 1998 - ABB, the international engineering company, announced today it has agreed to sell its investment and asset management business to Skandinaviska Enskilda Banken, of Stockholm, Sweden. The business involves institutional asset management, mutual funds, ABB pension funds and the asset management of some ABB insurance-related funds. Total funds under management amount to approximately US$ 4 billion. The business employs about 80 people with operations in Sweden, Finland, Norway, the U.S., Switzerland and Poland, and reported income before taxes in 1997 of US$ 1 million. Both parties agreed not to release details about the selling price. The sale is subject to regulatory approvals in the respective countries.

"With its size and strong presence in the global market, Skandinaviska Enskilda Banken will provide the economies of scale needed to meet increasing competition and growing cost pressure in the worldwide asset management business," said Jan Roxendal, head of ABB’s Financial Services segment. "We are convinced that they are the right partner to develop this business even further."
ABB’s investment management business is part of the Group‘s Financial Services segment, which provides ABB companies and external customers with a variety of treasury management, insurance, leasing, project financing and other services. The segment employs about 900 people worldwide and reported income before taxes in 1997 of about US$ 300 million. The ABB Group employs about 220,000 people worldwide with orders in 1997 of US$ 35 billion. (End)

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    • Mr. John Fox
      ABB Corporate Communications, Zurich
      Tel: +41 1 317 7371
      Fax: +41 1 317 7958
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