Hitachi nears $7 billion deal to buy ABB's power grid business; pact to be Japanese conglomerate's largest-ever acquisition

Japan’s Hitachi Ltd is close to agreeing a deal to buy Switzerland based ABB Ltd’s (ABBN.S) power grid business for about 800 billion yen ($7.1 billion)

Reuters December 12, 2018 17:45:41 IST
Hitachi nears $7 billion deal to buy ABB's power grid business; pact to be Japanese conglomerate's largest-ever acquisition

Japan’s Hitachi Ltd is close to agreeing a deal to buy Switzerland based ABB Ltd’s power grid business for about 800 billion yen ($7.1 billion), the Nikkei business daily reported on Wednesday.

Hitachi nears 7 billion deal to buy ABBs power grid business pact to be Japanese conglomerates largestever acquisition

A logo of Hitachi Ltd. Reuters image.

Hitachi's board confirmed a plan to move forward with the deal, which would be the Japanese industrial conglomerate's largest-ever acquisition, the Nikkei reported.

A Hitachi spokesman said the company did not make any announcement and declined to comment further. ABB did not immediately respond to a Reuters request for comment.

ABB had been in talks with Hitachi, Mitsubishi Electric Corp and State Grid of China to sell all or part of its power grids business, which makes power transformers and substations for transmitting electricity, Reuters reported in November.

ABB, which also makes industrial robots, wants to sell the unit because it is the company’s least profitable unit and offloading the division will allow it to focus on other areas such as automation.

ABB’s power grid business employs 36,000 people and had sales of $10.4 billion last year. It had an operating profit margin of 10.0 percent in the third quarter, down 60 basis points from a year earlier.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Hitachi UT32-MH700A
Reviews

Hitachi UT32-MH700A

A conventional TV that is well-priced and performs like-wise, though not without flaws.

Hitachi 37 LD9000TA LCD TV
Reviews

Hitachi 37 LD9000TA LCD TV

This LCD TV from Hitachi is pricey - but it looks good and performs even better.

Hitachi Launches HD TVs With In Built HDDs
News & Analysis

Hitachi Launches HD TVs With In Built HDDs

Hitachi unveils 2 new full HD plasma TVs, with built in 250 GB hard disk recorders.