Hitachi has signed a deal to buy ABB’s power grids business.
The firm says the agreement will allow ABB’s power grids products, systems, software and service solutions to be integrated with Hitachi’s advanced digital technology products.
Hitachi plans to acquire an initial 80.1% stake in the Power Grids business and expects to close the acquisition in the first half of 2020 – it has also entered into a purchase option to acquire the remaining 19.9% stake in Power Grids at a later date, which would make it a wholly-owned subsidiary.
Hitachi says it will offer advanced digital grid solutions, build an energy platform that connects various fields such as mobility, life and industry and expand provision of the platform to promote more efficient use of electricity.
The power grids market is rapidly expanding, driven by increasing adoption of renewable energy, rising energy demand and supply in emerging countries and the expansion of distributed power sources, as well as increasing deregulation and reform.
Toshiaki Higashihara, President and CEO of Hitachi, said: “Today’s agreement between ABB and Hitachi is a significant turning point in the global power and energy markets at a time when digital technology is fundamentally changing our society and the pattern of energy demand and supply is diversifying.
“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.”