12/31/2023 0 Comments Hitachi abb power grids houston![]() Hitachi may reveal more about the new company’s financial status in March 2021. Hitachi ABB Power Grids begins operations with $1.32 million in capital, 100 manufacturing sites, and 200 sales sites. The new company, however, will also leverage Hitachi’s digital solutions portfolio, enabling it to expand further into utilities, mobility, smart cities, and energy storage, as well as the industrial internet of things (IIOT). It will also take over ABB’s brand-name reputation in the power sector, specifically pertaining to the development, engineering, manufacturing, and sale of products, systems, software, and services, and projects. Now finalized, the deal allows Hitachi ABB Power Grids to take the helm of all four of ABB’s major grid businesses: Grid Automation Grid Integration-including ABB’s high-voltage direct current systems and power semiconductors High Voltage Products, including gas-insulated switchgear and Transformers. “In addition, the horizontal overlaps between the activities of the companies are limited, and increments in vertical links are small,” and a number of strong players would remain in the market after the merger, the EC said. The European Union’s (EU’s) executive arm cleared the deal under the EU Merger Regulation on May 29, finding it would raise no competition concerns because Hitachi’s activities in the power grid are limited to a geographic focus on Japanese and Chinese markets. While Hitachi and ABB first announced that Hitachi would acquire the majority stake of ABB’s Power Grids in an $11 billion deal in December 2018, the companies have been awaiting regulatory approvals, such as from the European Commission (EC). ![]() The official launch of the the joint venture has been anticipated for 18 months, and it was accomplished despite stalled activities owing to COVID-19. In a press release on July 1, the new company also said that “the current management team will ensure business continuity.” An Expanded Focus for Power Grids It will be chaired by Toshikazu Nishino, executive vice president of Hitachi, and ABB’s Claudio Facchin will serve as its CEO. 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.īut for now, Hitachi ABB Power Grids will be headquartered in Switzerland and employ approximately 36,000 people in 90 countries. 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. 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. ![]() 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.
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