ABB sells 80% of $11bn power grids unit to Hitachi

By Bruno Reis

The Zurich-based technology firm, ABB, has announced the sale of a majority stake in its power grids business.

The company has sold 80% shares in the unit to Japan’s Hitachi. The deal has valued the subsidiary at US$11bn.

The Swiss firm now intends to focus its operations on digital industries. ABB had initially decided to keep the power grids unit following a review two years ago.

“ABB has been driving industrial change for more than a century as a global pioneering technology leader,” stated Ulrich Spiesshofer, CEO of ABB.

“As a result of our Next Level strategy, all of our businesses are today number 1 or 2 in their respective markets.”

SEE ALSO:

“To support our customers in a world of unprecedented technological change and digitalization, we must focus, simplify and shape our business for leadership. Today’s actions will create a new ABB, a leader focused in digital industries.”

“Power Grids will strengthen Hitachi as global leader in energy infrastructure and Hitachi will strengthen Power Grids’ position as a global leader in power grids.”

“With this transaction, we are realizing the value we have built through the transformation of Power Grids over the last four years.”

“Our shareholders will directly benefit through the return of the proceeds of the divestment. Building on our existing partnership announced in 2014, the initial joint venture will provide continuity for customers and our global team.”

Share

Featured Articles

Top 10 fastest-growing Indian companies in the UK

Business Chief takes a look at the top 10 fastest-growing Indian companies in the UK, according to the India Meets Britain Tracker from Grant Thornton

Top 10 workplaces prioritising people and planet in the UAE

Sustainable, flexible, collaborative, tech-driven, and amenities-rich, the office of the future considers both people and planet – here are 10 in the UAE

Top 10 female HR execs leading Saudi’s workplace transition

As Saudi pushes for more nationals and women in the workplace, all eyes are on the Kingdom’s HR leaders. Here, 10 female HR execs leading the transition

Top 10 largest asset managers by AUM operating in the UAE

Corporate Finance

Top 10 female CEOs leading Africa’s biggest businesses

Leadership & Strategy

Top 10 Executive MBA programmes in the United Arab Emirates

Leadership & Strategy