ABB and Hitachi close in on power grid business deal
Hitachi's board confirms a plan to go ahead with the deal, which would be the Japanese group’s largest acquisition, says the Nikkei
Tokyo — ABB is in talks with Japan’s Hitachi about the Swiss engineering group’s power grid business, which it may sell to focus on more profitable divisions. ABB has been in talks with Hitachi, Mitsubishi Electric Corporation and State Grid of China to sell all or part of the business, which makes power transformers and electricity substations, Reuters reported in November. “ABB confirms that it is currently in discussions with Hitachi to expand and redefine the existing strategic power grid partnership between the two companies announced in December 2014,” the Swiss company said. Hitachi said in a statement it was discussing the power business with ABB but nothing had been decided. ABB, which also makes industrial robots, wants to offload its least profitable division, allowing it to focus on areas such as automation, while Hitachi is keen to expand abroad. “There can be no certainty that any transaction will occur, or as to the timing, structure or terms of any transaction,” ABB ...
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