Japanese conglomerate Hitachi Ltd. has signed an agreement for the acquisition of 80.1% from the Swiss-Swedish automation company ABB in a $11 Bn deal, according to a press release from 17 December. Subject to regulatory approvals and fulfillment of closing conditions, the deal is expected to end by the first half of 2020.
ABB is a global technology leader in Power Grids operating mainly in four divisions: robotics, power, heavy electrical equipment and automation technology, with three of them being represented in Bulgaria. The company has four low-voltage electrical components factories in Bulgaria and is the sixth largest local machinery and equipment manufacturer with revenues of €182 M.
ABB’s business in power grids will help Hitachi secure a global customer base and build an energy platform to expand their existing energy solutions business. Hitachi has also entered into a purchase option to acquire the remaining 19.9% stake in the Power Grids unit, making it a wholly-owned subsidiary. ABB’s plans of selling the Power Grids business will help the company focus on digital industries and simplify their business model and structure to four main businesses: electrification, industrial automation, robotics & discrete automation, and motion. “Building on our technology and global talented employee base, we will further strengthen our focus in digital industries, delivering competitive returns for shareholders, including our committed dividend policy,” said Peter Voser, Chairman of ABB.
The Japan-based multinational Hitachi is the parent of Hitachi Group, a highly-diversified company that operates in the fields of IT systems, energy and power, construction, machinery, infrastructure, etc. “Hitachi will combine ABB’s strengths in the power grids business with our digital technology to build an energy platform that contributes to innovating the energy business. This creates further innovation for business fields such as life and industry and helps us address society’s issues and improve quality of life,” said Toshiaki Higashihara, President & CEO of Hitachi.