Hitachi has decided to acquire the power grids business from ABB and has signed an agreement with ABB. Hitachi plans to initially acquire an 80.1% stake in the power grids business and expects to close the acquisition in the first half of 2020, making power grids a consolidated subsidiary.
Hitachi has entered into a purchase option to acquire the remaining 19.9% stake in Power Grids, making Power Grids a wholly-owned subsidiary. Hitachi and ABB agreed to the enterprise value of the company operating power grids business separated from ABB as US$ 11 billion. The purchase price of 80.1% stake is expected to be approximately US$6.4 billion after deducting debt like item from the enterprise value.