ABB used the proceeds to fund organic growth and reward shareholders through share buybacks. In November 2021, the company divested its Mechanical Power Transmission division (Dodge) for $2.9 billion. Hitachi will acquire about 80.1 percent of the business while ABB will hold the rest. The spin-off helps the company focus on growing global megatrends in electrification and automation. As part of its portfolio management strategy, in October 2022, ABB completed the spin-off of its turbocharging unit, Accelleron. The company will be able to focus more on key market trends and customer needs of electrification of transport and industry, automated manufacturing, digital solutions and increased sustainable productivity. ZURICH, SWITZERLAND, Sept 29, 2020- Hitachi ABB Power Grids has signed a definitive agreement to acquire US-based Pioneer Solutions LLC, a provider of industry-leading front-to-back-office. ![]() ABB held a pre-defined option to exit the remaining stake by 2023.Īccording to the release, the divestment helps ABB focus entirely on industrial customers. The Hitachi Energy joint venture (formerly Hitachi ABB Power Grids) was formed in 2020 following ABB’s divestment of 80.1% of its Power Grids business to Hitachi. According to the press release, ABB has realized a net positive cash inflow of approximately $1.425 billion in the fourth quarter of 2022 as part of the divestment. We will do this by evolving our decentralized business model, strengthening our performance management culture and driving active portfolio management.”ĪBB is a long-term partner of Hitachi and will initially retain a 19.9 percent equity stake in the joint venture that will operate as Hitachi ABB Power Grids and be headquartered in Switzerland.ABB completed its previously announced divestiture of the remaining 19.9% stake in Hitachi Energy joint venture to Hitachi, Ltd. “Leveraging our technology leadership and passion for innovation, we will now focus on creating superior value for our customers, employees and shareholders. “With the divestment, ABB is well positioned for the future with a strong focus on industrial customers,” added Björn Rosengren, CEO. ![]() Against this backdrop, Hitachi announced in December 2018 the acquisition of the power grid business of Switzerland's major heavy electric company, ABB Ltd, starting a new joint venture Hitachi ABB Power Grids Ltd.' which began operations on July 1, 2020. Toshiaki Higashihara, president and CEO of Hitachi, Ltd., at the press conference on July 2, 2020. Our goal is to execute this in an efficient and responsible way, taking account of the prevailing circumstances.” Advantages of Hitachi ABB Power Grids Ltd. ABB remains committed to using net cash proceeds from the transaction for a share buyback program. We believe Hitachi is the best owner for Power Grids and its next stage of development, building on the solid foundation achieved under ABB’s previous ownership. “Since announcing our intention to divest Power Grids to Hitachi, ABB has made significant progress in becoming a more customer-focused and simplified organization. ![]() “Today’s announcement marks an important turning point in the history of ABB,” said Peter Voser, chairman of the board of directors. ![]() The company said the divestment allows it to focus on key market trends and customer needs such as the electrification of transport and industry, automated manufacturing, digital solutions and increased sustainable productivity. The deal was valued at $7.6 billion to $7.8 billion. ABB, Zurich, Switzerland, on Wednesday announced the completion of the divestment of 80.1 percent of its Power Grids business to Hitachi.
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