ABB agrees to pay $315M to settle coordinated African bribery probe (NYSE:ABB)

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ABB (NYSE:ABB) agreed to pay more than $315M to resolve a multinational investigation into bribery of a high-ranking official at South African state-owned power utility Eskom, the U.S. Department of Justice said Friday.

ABB (ABB) bribed the Eskom official during 2014-17 “in order to corruptly obtain confidential information and win lucrative contracts,” the DoJ said.

Company subsidiaries also pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the U.S. Foreign Corrupt Practices Act.

The DoJ said its resolution was coordinated with prosecutorial authorities in South Africa and Switzerland, as well as the U.S. SEC.

The company said in September it was setting aside a ~$325M provision to cover costs related to investigations surrounding the Kusile power plant in South Africa.

ABB’s (ABB) Q3 results included above-average revenue and order growth, as well as the best margins seen in many years, but the next 12-18 months should be more challenging for reported revenue and order growth, Stephen Simpson writes in an analysis posted on Seeking Alpha.