Hitachi Ecquired up to 800 Billion Yen, Switzerland ABB
On the 12th, Hitachi began final adjustment in the direction of acquiring the division from Switzerland’s largest ABB in the power system business including transmission and distribution that delivers electricity made at the power plant to companies and homes. The total purchase is expected to be up to 800 billion yen, the largest ever recorded as Hitachi’s M & A (merger and acquisitions). The transmission and distribution business is expected to grow due to the spread of renewable energy and the development of electric power networks in emerging countries. Hitachi will be the world leader in transmission and distribution, and in the heavy electric field it will line up with German Siemens in second place …
If the acquisition is realized, Hitachi‘s consolidated sales exceed 10 trillion yen, achieving a sales scale that aligns with Siemens Germany, the world’s second-largest producer of heavy electricity. Following the leaders of General Electric (GE).
“We aim to expand overseas expansion by acquiring ABB’s distribution and distribution business which has a sales channel to the emerging countries in addition to Europe and the United States. Hitachi confirmed the policy to proceed with the acquisition at the Board of Directors of the same day. I will negotiate about ABB and purchase price in the future and think about agreeing in the month.
Hitachi positions power and energy as one of its main businesses, and plans to build power plants with nuclear plants and renewable energy as well as power transmission and distribution business to send generated electricity to enterprises and homes .
With power transmission and distribution, with the popularization of renewable energy with large output fluctuations, the importance of adjusting the power supply and demand between multiple power plants and the demand side for stable supply is increasing.
It seems that it seems to have judged that Hitachi‘s IoT (Internet’s Internet) technology can be utilized in the business after acquisition.
Hitachi announced the comment that, “It is true that we are doing various discussions with ABB on the evening.”