Japan’s Hitachi is going to take over ABB Grid business by purchasing 80.1 percent of its share.
Hitachi will be paying $7 billion for its initial 50 percent stake.
This will allow Hitachi to boost its power business globally.
ABB is a Zurich-based company and values its power business at $11 billion.
Through this deal, ABB is looking to offload its least profitable division to focus on areas such as automation.
“Our four newly shaped businesses, each a global leader, will be well aligned to the way our customers operate and focus stronger on emerging technologies such as artificial intelligence,” ABB chief executive Ulrich Spiesshofer said in a statement.
ABB’s Power division has employed 36,000 people and had sales of $10.4 billion last year.
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