The post Hitachi Absorbs ABB Power Grids in New $ 10B Joint Venture appeared first on POWER Magazine.

Hitachi on July 1 commandeered a majority share of ABB’s lucrative Power Grids business and officially launched a joint venture company—Hitachi ABB Power Grids. The new company, which already has a volume of about $ 10 billion, is expected to provide financial muscle to support ambitious projects and new business opportunities as the sector embraces decentralization and digitalization.

Japanese technology conglomerate Hitachi holds a 80.1% ($ 6.85 billion) stake in Hitachi ABB Power Grids, while Zurich-based ABB will hold the remaining 19.9% stake. ABB also holds a pre-defined option to exit the retained 19.9% shareholding three years after closing, and it is likely it will be bought out by Hitachi, which has said it will consider acquiring ABB’s share to make it a wholly owned subsidiary after 2023. 

But for now, Hitachi ABB Power Grids will be headquartered in Switzerland and employ approximately 36,000 people in 90 countries.…

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