Engineering company ABB said Tuesday it agreed to sell its stakes in two power projects in India and Morocco to Abu Dhabi National Energy for $490 million (379 million euros).
The deal, which has to be approved by lenders and other customers, is expected to be completed in the second quarter.
The sale of the 50% holdings in the Jorf Lasfar Energy Project in Morocco and the Neyveli Project in the Indian state of Tamil Nadu is part of the company's move to concentrate its business on power equipment and automation. ABB recently announced that it will sell its oil and gas unit Global Lummus, which analysts estimate worth up to $600 million (464 million euros).
"The move is part of our ongoing divestment of noncore businesses, as we continue to focus on our power and automation technologies," said ABB's Chief Financial Officer Michel Demare. "We obtained a fair price for the stakes, fully reflecting the quality of the assets."
The stakes in India and Morocco are part of ABB's equity ventures unit, which is not a core activity for the company, it said.
ABB shares were up 0.2% at 22.65 Swiss francs ($18.14; 14.03 euros) in Zurich trading.