“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,” he added. Meanwhile Ulrich Spiesshofer, chief executive at ABB, said the combination of the power grids business with Hitachi stood to make for a “globally leading infrastructure business”. This creates further innovation for business fields such as life and industry and helps us address society's issues and improve quality of life,” he said. “Hitachi will combine ABB's strengths in the power grids business with our digital technology to build an energy platform that contributes to innovating the energy business. Tokyo/Zurich: ABB will sell 80.1 of its power grids division to Japan’s Hitachi, the Swiss engineering group said on Monday, adding it would return net cash proceeds of 7.6-7.8 billion from. Toshiaki Higashihara, president and chief executive at Hitachi, described the deal as a “significant turning point” for global energy and power markets at a time when digital technology is “fundamentally changing” energy demand and supply. Hitachi pointed to internal analysis that placed the global power grids market as having the potential to be valued at US$100 billion by 2020, with growth predominantly driven by the transition towards renewable energy and significant electrification. Hitachi said the transaction would allow it to combine ABB’s grid-level technology with Hitachi’s digital platform and look to expand Hitachi’s reach through ABB’s customer base.įurthermore, Hitachi is aiming to expand its reach into adjoining markets such as emobility and C&I energy. The final purchase price will be based on customer adjustments for net working capital and net debt based on the closing date, which has been tentatively slated for H1 2020. According to Bill Rose, the manager of media and public relations for ABBs Power Grids division in North America, ABB is one of the few suppliers that has been. Hitachi will pay a purchase price of US$6.4 billion (£5 billion) for the initial 80.1% after deducting debt-like items from the unit’s value. Hitachi and ABB have agreed to a deal which values the power grids business at around US$11 billion (£8.7 billion).
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