Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Hitachi moves to buy Swiss ABB's power grid unit for $7bn: report

Share this article

Hitachi moves to buy Swiss ABB's power grid unit for $7bn: report
File photo: AFP
14:57 CET+01:00
Japan's Hitachi is moving to purchase the power grid business of Swiss engineering giant ABB for a deal worth as much as $7.05 billion, Japanese media reported on Wednesday.

The electronics giant is in "the final stage of talks" to acquire the ABB unit for up to an estimated 800 billion yen, the Nikkei business daily and Jiji Press said.

Hitachi confirmed at its board meeting on Wednesday the plan to move forward with the deal and the two firms are expected to reach a final agreement as early as this week, according to the Nikkei.

A Hitachi spokeswoman declined to comment, while ABB said it is "in discussions with Hitachi to expand and re-define the existing strategic power grid partnership between the two companies."

"There can be no certainty that any transaction will occur, or as to the timing, structure or terms of any transaction," ABB said in a statement.

ABB's power grid unit manufactures and operates infrastructure including power transmission equipment and control systems in multiple countries.

The two companies announced in 2014 plans to set up a joint venture to market power transmission equipment in Japan.

The Nikkei said Hitachi plans to initially take a stake of around 50 percent in the power grid unit and over the next few years turn it into a wholly-owned subsidiary.

The deal would make Hitachi the world's second-largest heavy electrical equipment maker by revenue, behind only General Electric, the paper said.

Get notified about breaking news on The Local

Share this article

From our sponsors

Get real-world experience while you study at EU Business School

Having relevant work experience is essential for your CV but how do you acquire it, especially when you are a student? Simple: by learning by doing as is the norm for students at EU Business School. The Local caught up with one recent graduate who has reaped the benefits of an international education at EU Business School.