11/18/2018, 9:44 PM (Source: TeleTrader)
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Report: Hitachi in talks to buy ABB's electricity grids

Engineering company ABB Ltd. is seeing progress in negotiations to sell its unit for transformers and power transmission and distribution to Japan's Hitachi Ltd., according to insiders who spoke to the Financial Times. The report published on Sunday was followed by unconfirmed information obtained by Nikkei that several bidders are interested, including one from China. The Swiss and Swedish is also said to be considering a possible spinoff or initial public offer for the power grids operations.

The business is active worldwide and analysts have been pointing out at regulatory hurdles in case of a sale to a Chinese entity or other buyers. Earlier speculation in the media cited Mitsubishi Electric as one of the interested manufacturers. Chiyoda-based Hitachi, which has a joint venture in the sector with ABB since 2015, has been streamlining its operations.

A divestment of a majority part of the electricity grids, worth as much as $13 billion, is also apparently an option. They brought in $10.4 billion in revenue in 2017. ABB rejected the initiative in 2016 to sell the division.

Breaking the News / IT