ABB Selling Power Grids Division to Hitachi
Dec 18, 2018
ABB has reached a deal with Hitachi to sell an 80.1% stake in its Power Grids division, which makes transformers, long distance electricity-transmission systems and energy storage units. ABB will now concentrate on four leading sectors, including robotics and automation, and simplify its organizational structure. The company will disclose more details at a fourth-quarter earnings announcement in February.
ABB’s Power Grids division is worth an estimated US$11 billion. No major job cuts are expected.
ABB says it will now focus on four leading sectors and simplify its organizational structure. Expect more details when ABB makes a fourth-quarter earnings announcement in February.
The sale will advance Hitachi Chief Executive Officer Toshiaki Higashihara’s efforts to overhaul the diversified company and become a top provider of grid equipment as prospects for nuclear power become increasingly uncertain.
As energy systems decentralize and the growth of renewable energy and electric vehicles foster new business models, the purchase will enable Hitachi to build an energy platform by combining ABB’s power grids business with Hitachi’s digital technology. Hitachi anticipates the power transmission and distribution market will grow to US$100 billion by 2020 and benefit from demand for electric cars, storage batteries and renewable energies.
