CCI approves Hitachi ABB power grid deal
Hitachi ABB deal: The Competition Commission of India (CCI) has approved the proposed 80.1 per cent acquisition of the power grid business of ABB Limited.
Hitachi ABB deal: The Competition Commission of India (CCI) has approved the proposed 80.1 per cent acquisition of the power grid business of ABB Limited. The decision was taken in a meeting yesterday during a video conference between the stake holders and the CCI officials. The CCI informed about the decision in a written press statement.
Informing about the decision CCI press statement read, "The proposed combination envisages acquisition of 80.1 per cent share capital of ABB Management Holding AG (ABB Management) by Hitachi Limited (Hitachi) from ABB Limited (ABB). ABB Management will hold the entire power grid business of ABB (Target Business)."
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Hitachi ABB deal initially came to the fore in December 2018 when Hitachi announced decision to buy 80.1 per cent stake in the power grid business of ABB Limited, making it a consolidated subsidiary. Later, Hitachi entered into a purchase option to acquire the remaining 19.9% stake, making Power Grids a wholly-owned subsidiary eventually.
After the completion of Hitachi ABB deal, Hitachi will offer innovative energy solutions globally by combining ABB’s world-class offerings, including advanced digital grid solutions, with Hitachi’s digital technology. In addition, Hitachi aims to build an energy platform that connects various fields such as mobility, life and industry.
Hitachi, headquartered in Japan, is the parent company of the Hitachi group of companies. It is active in a variety of business segments including IT Solution, Energy Solution, Industry Solution, Mobility Solution, and Smart Life Solution. The Target Business involves development, engineering, manufacturing and sale of products, systems and projects in the power grids sector.
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