ABB has agreed to sell its remaining 19.9% equity stake in Hitachi Energy to Hitachi, Ltd.
Hitachi Energy is the joint venture that was formed from ABB’s Power Grids business in 2020, with Hitachi holding a stake of 80.1%.
According to ABB, the divestment is a conclusion to the original agreement signed between the parties in December 2018.
The transaction, valued at $1.679 billion, is expected to close in the fourth quarter of 2022 with ABB continuing to provide transition services to Hitachi Energy for them to fully separate from ABB’s systems.
Also of interest
Altrad completes acquisition of Doosan Babcock
New leaders take the helm of Rolls-Royce Power Systems
“We are delighted to have agreed on the final part of the transaction earlier than expected and on favorable terms. This will further strengthen our balance sheet and give us additional flexibility in our capital allocation decisions,” said Timo Ihamuotila, chief financial officer of ABB.
The acquisition is aligned with Hitachi’s 2030 purpose-driven growth plan, which was announced during Hitachi Investor Day 2022. The plan, according to the company, includes expanding its portfolio offering to customers across the value chain.
“Hitachi and Hitachi Energy have been generating synergies by combining digital and energy technologies that are contributing to the global energy transition. We will accelerate the drive for synergies, digitalisation and service and we will continue to offer deployment of both IT and operational technology (OT) at scale and with speed…” said Claudio Facchin, senior vice president and executive officer of Hitachi and CEO of Hitachi Energy.
