Hitachi to acquire power grids unit from ABB
Japanese multinational IT conglomerate Hitachi has announced that it will pursue the acquisition of the power grid business unit of automation-focused Swiss-Swedish firm ABB
Hitachi’s proposition would see it purchase an 80.1% stake in the power grids business, with Financial Times reporting that the deal would be worth around US$6.2bn.
The remaining 19.9% will likely be acquired separately to make the power grids business a wholly-owned subsidiary of Hitachi.
FT added that this would be the largest overseas acquisition in Hitachi’s history.
Hitachi’s 17 December press statement said that the deal will enable the firm to offer innovative energy solutions to its global markets, augmenting the state-of-the-art power grids platform with Hitachi’s own digital technologies.
“Today’s agreement between ABB and Hitachi is a significant turning point in the global power and energy markets at a time when digital technology is fundamentally changing our society and the pattern of energy demand and supply is diversifying,” said Toshiaki Higashihara, President and CEO of Hitachi, in the press release.
“Hitachi will combine ABB’s strengths in the power grid business with our digital technology to build an energy platform that contributes to innovating the energy business.
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“This creates further innovation for business fields such as life and industry and helps us address society’s issues and improve quality of life.”
Ulrich Spiesshofer, ABB’s CEO, added:
“ABB’s power grids business will strengthen Hitachi as global leader in energy infrastructure and Hitachi will strengthen the position of ABB’s power grids business as a global leader.
“Our shareholders will directly benefit from the return of the proceeds of the divestment.”
The deal is expected to close in the first half of 2020.