Zurich, Switzerland-based ABB Group will be selling its Global Power Grid business to Japan-based Hitachi at an enterprise value (EV) of ~USD11bn. The deal has been valued at an EV/EBITA of 11.2x. Press releases suggest that ABB Group plans to return cash proceeds of USD7.6-7.8bn from the transaction to shareholders through a share buyback, or a special dividend. We believe that the T&D; business has morphed into a mere converter of Raw Materials into Finished Goods from being a technology-driven business earlier. Given the intense competition and high dependence on a single group of buyers, i.e., Power Utilities, the...