Hitachi reaches $7 billion deal to acquire ABB’s power grid business

• 5 years ago (2018-12-17)
• David Flin

Asia 848 Transmission 181

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Hitachi has reached a deal to acquire ABB’s power grid business for an estimated $7 billion. This will be Hitachi’s largest ever acquisition.

The move reflects Hitachi’s aims to combine strengths in power generation and information technology.

ABB operates the world’s largest grid business. The deal will make Hitachi the world’s second-largest heavy electrical equipment maker by revenue, behind only GE.

The plans are for ABB to spin off the unit into a separate company. Hitachi aims to invest in the new spun-off company in stages, and turn it into a wholly-owned subsidiary over the course of one to two years. This is intended to reduce the risk from changes in the business environment.