Hitachi to Acquire ABB's Power Grids Biz

Economy

Tokyo, Dec. 17 (Jiji Press)--Japan's Hitachi Ltd. <6501> said Monday that it has agreed with ABB Ltd. to acquire the Swiss heavy electric machinery maker's power grids business, at a time when the power grids market is expanding amid increasing use of renewable energy.

Hitachi will purchase a stake of 80.1 pct in the ABB power grids unit for about 6.4 billion dollars in the first half of 2020 and acquire the remaining stake after four years or later to make it a wholly owned subsidiary.

The ABB power grids division's revenues totaled 10 billion dollars for 2017, according to the announcement.

The ABB deal, the largest acquisition ever by Hitachi, is expected to boost the Japanese electronics and machinery giant's consolidated annual sales to over 10 trillion yen, matching those of Germany's Siemens AG, the world's second largest maker in the sector.

With the acquisition, Hitachi aims to leverage ABB's business ties in the United States, Europe and emerging economies.

[Copyright The Jiji Press, Ltd.]

Jiji Press