Hitachi Ltd. and ABB Ltd. are in talks for a purchase / sale on power grids after the ABB Ltd., Swiss engineering giant was considering the sale of the division earlier this year.
ABB mentioned Hitachi discussions are looking to expand and re-define an existing strategic power-grid partnership between the two companies that goes back to 2014, companies revealed in a statement Wednesday. Hitachi also made a similar statement after trading hours in Tokyo. It’s the first time either has commented on a potential transaction.
Nikkei reported Wednesday that Hitachi is preparing to buy the power grid division for as much as 800 billion yen ($7 billion). They are planing to reach an agreement as early as this month after a final assessment.
Hitachi shares declined 0.7 percent Thursday in Tokyo, after jumping as much as 2.4 percent in early trading. ABB rose 4 percent in Zurich trading Wednesday, the highest in almost eight months, giving it a market value of about $43 billion.
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