![]() last month agreed to buy Austrian commercial refrigerator maker AHT Cooling Systems GmbH in a deal worth about $1 billion. In October, KKR & Co.’s Calsonic Kansei agreed to acquire car-parts maker Magneti Marelli from Fiat Chrysler Automobiles NV in a deal valued at 6.2 billion euros ($7 billion). is on course to complete its $62 billion takeover of Shire Plc after shareholders cleared the deal this month. The deal is the latest major overseas transaction by a Japanese company as financing costs remain low. ![]() The company’s atomic reactor sales have dried up as the global industry is beset by overruns, heightened competition from natural gas and renewables, and stricter rules following the Fukushima disaster.Īny agreement would add to the $3.5 billion of announced acquisitions Hitachi has been involved in over the last three years, according to data compiled by Bloomberg, with the biggest being last year’s $1.25 billion purchase of units and assets from Accudyne Industries. The acquisition will bolster Hitachi’s position in the growing power transmission and distribution sector, and help it diversify away from its nuclear plant business. The business generated $7.1 billion in revenue in the first nine months of 2018 and a profit margin of 9.8 percent, the lowest of its four units.ĪBB and Hitachi said last week that they were in discussions to expand and redefine an existing strategic power-grid partnership that dates to 2014, without providing details on the terms. That stance changed this year after the value of the power-grids business rebounded following productivity and margin gains, prompting ABB to work with advisers to consider options, people familiar with the matter said in October. After conducting a strategic review, Chief Executive Officer Ulrich Spiesshofer defied the investor in 2016 by deciding to hang on to the division, arguing the business was significantly undervalued. For Hitachi, the move is part of Chief Executive Officer Toshiaki Higashihara’s efforts to restructure the diversified company, which is vying to become one of the top grid companies in the world, according to a June presentation.Ī divestment would also meet a longtime demand of activist investor Cevian Capital AB, which became a major ABB shareholder more than three years ago. The sale of the business - which makes power transformers, long distance electricity-transmission systems and energy storage units - would shrink ABB’s revenue by about a quarter and leave the Swiss engineering giant more focused on robotics and automation. Hitachi will acquire about 80.1 percent of the business while ABB will hold the rest. agreed to buy ABB Ltd.’s power grids division in a deal that values the entire business at $11 billion, a plan that’s aimed at turning the Japanese conglomerate into a top global provider of equipment for electricity networks.ĪBB will return proceeds of $7.6 billion to $7.8 billion through a buyback of shares or other measures, the European company said. ![]() ![]() Until the sale of its Power Grids division in 2020, ABB was Switzerland's largest industrial employer.ĪBB is traded on the SIX Swiss Exchange in Zürich, the Nasdaq Nordic exchange in Sweden and the OTC Markets Group's Pink Sheets in United States.Īn ABB entity pleaded guilty for bid rigging in 2001, and the company has had 3 US Foreign Corrupt Practices Act bribing resolutions against it in 2004, 2010, and 2022.(Bloomberg) - Hitachi Ltd. It was ranked 341st in the Fortune Global 500 list of 2018 and has been a global Fortune 500 company for 24 years. The company has also since expanded to robotics and automation technology. Both companies were established in the late 1800s and were major electrical equipment manufacturers, a business that ABB remains active in today. The company was formed in 1988 when Sweden's Allmänna Svenska Elektriska Aktiebolaget and Switzerland's Brown, Boveri & Cie merged to create Asea Brown Boveri, later simplified to the initials ABB. is a Swedish-Swiss multinational corporation headquartered in Västerås, Sweden, and Zürich, Switzerland.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |