Hitachi gets CCI nod to buy 80.1% stake in ABB’s power grid arm

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The Competition Commission of India (CCI) has approved acquisition of 80.1% stake by Hitachi in the power grid business of Swiss power major ABB Limited.

Hitachi and ABB had signed the acquisition agreement in year 2018.

The acquisition is expected to close in the first half of 2020, Hitachi had stated earlier.

“The acquisition will help Hitachi to strengthen its energy solutions globally by combining ABB’s power grids products, systems, software and service solutions with its digital technology. In addition, Hitachi aims to build an energy platform that connects various fields such as mobility, life and industry”—read a statement by the company.

As per the statement, Hitachi and ABB agreed to the enterprise value of the company operating power grids business separated from ABB as US$11 billion. The purchase price of 80.1% stake is expected to be US$6.4 billion after deducting debt like item from the enterprise value.

For the transaction, Hitachi has been assisted by UBS and Goldman Sachs Japan as financial advisors.

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