Hitachi Completes Acquisition of ABB's Power Grids Biz
Tokyo, July 1 (Jiji Press)--Japanese electronics and machinery giant Hitachi Ltd. <6501> said Wednesday it has completed the acquisition of a power grids company carved out from Swiss heavy machinery maker ABB Ltd.
Hitachi spent 6.85 billion dollars, or 740 billion yen, to buy an 80.1 pct stake in the power grids company, now named Hitachi ABB Power Grids Ltd.
The investment will be expanded further to 1 trillion yen as Hitachi aims to make it a wholly owned subsidiary to ramp up the global power grids business.
The power grids market has a big potential for growth as the use of renewable energy, such as solar power, is expected to spread further.
Toshikazu Nishino, Hitachi executive vice president responsible for its energy business, doubles as chairman of Hitachi ABB Power Grids. Based in Zurich, Switzerland, the company started business Wednesday.
[Copyright The Jiji Press, Ltd.]