October 28, 2019 / 7:59 AM / 25 days ago

ABB buys majority stake in Chinese electric vehicle charging company

ZURICH (Reuters) - ABB (ABBN.S) has bought a majority stake in Shanghai Chargedot New Energy Technology Co. Ltd, a Chinese electric vehicle charging company, the Swiss engineering company said on Monday as its ramps up its operations in e-mobility.

Chargedot, which employs 185 people, makes charging stations and software platforms to enable vehicles to be charged with electricity.

ABB, which has installed an electric vehicle charging network in Singapore and across the Netherlands, has bought a 67% stake in Chargedot with an option to increase its stake. The price of the acquisition was not disclosed.

The acquisition, the first under Chief Executive Peter Voser, is intended to boost ABB’s presence in the fast-growing Chinese electric vehicle market, and strengthen the company’s relations with makers of electrically-powered trucks and cars.

China already has an electric vehicle fleet of 2 million vehicles - the largest in the world - ABB said, with consumers supported by a government incentive scheme and concerns about air pollution.

Sales of electric vehicles in China grew by 52% in the first half of 2019, according to the Center of Automotive Management with the market dominated by local manufacturers like Chery Automotive, Geely and BYD.

ABB has been working with BYD and Daimler in China on electric vehicle charging, while Chargedot has been working with car manufacturer SAIC. (600104.SS)

“Chargedot was one of the first high-tech enterprises in China to focus on new energy vehicle charging solutions. By joining with ABB, we will be positioned strongly to make the next big leap forward,” said Mao Chunhua, CEO of Chargedot in a statement.

Reporting by John Revill, editing by Riham Alkousaa and Thomas Escritt

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