Hitachi Energy Ltd ("Hitachi Energy") announced that Hitachi, Ltd. (TSE: 6501, "Hitachi") has signed a share transfer agreement for the remaining 19.9% shares from ABB Ltd (SIX: ABBBN, "ABB"), pursuant to the acquisition agreement signed on December 17, 2018(1). This is in line with the plan and ahead of schedule, and the transfer of shares will be completed by end of December 2022, subject to regulatory approvals.
"We are pleased with the progress of Hitachi Energy and we look forward to supporting the Hitachi Energy 2030 Plan, as announced during Hitachi Investor Day 2022," said Yoshihiko Kawamura, Executive Vice President and Executive Officer, CFO of Hitachi, Ltd., and the Chair of the Board of Hitachi Energy.
Hitachi Energy is making good progress with its portfolio offering that is strengthening, expanding, and evolving the power system supporting customers and partners across the entire lifecycle to enable a sustainable, flexible and secure energy system. The company is also well-positioned to accelerate the growing electrification of transportation, industry and building sectors with its long-term Hitachi Energy 2030 purpose-driven growth plan.
"Electricity will be the backbone of the entire energy system and the urgency of the energy transition requires us to collaborate and innovate across stakeholders and sectors, and the good news is that we can act now. Hitachi and Hitachi Energy have been generating synergies by combining digital and energy technologies that are contributing to the global energy transition. We will accelerate the drive for synergies, digitalization and service and we will continue to offer deployment of both IT and operational technology (OT) at scale and with speed, as we are advancing a sustainable energy future for all," said Claudio Facchin, Senior Vice President and Executive Officer of Hitachi and CEO of Hitachi Energy.
The good progress of the company is underpinned by the commitment from Hitachi, a diverse and passionate global team of 40,000 Hitachi Energy employees, and the tailwind from the development and deployment of innovative technology for a carbon-neutral vision where electricity will become the backbone of the entire energy system.
Based on the combined knowledge of close to 250 years between Hitachi Energy and Hitachi, the business has also leveraged its energy platform in combination with digital solutions from Hitachi, and launched solutions like Lumada Asset Performance Management and, most recently, Lumada Inspection Insights.
Strengthening the power system with High Voltage Direct Current (HVDC) technology for bulk renewable integration and interconnections between countries and continents, as well as the launch of an eco-efficient EconiQ(TM) portfolio for high-voltage products, transformers, and consulting, all initiatives that have contributed to the purpose-driven growth: advancing a sustainable energy future for all. In addition, we are expanding with digital solutions and services that are enabling carbon reductions. And we are evolving the power system through partnerships and new business models, as an integral part of the Hitachi Energy 2030 Plan.
The solid commitment from Hitachi to the announced acquisition of the remaining shares of Hitachi Energy ahead of plan will help accelerating synergies and implementation of the 2030 Plan enabling our agile and committed team to support customers and partners addressing the global challenge of the energy transition.
Note to editors:
The joint venture company was launched and began operation as Hitachi ABB Power Grids on July 1, 2020, and then announced the change of company name to Hitachi Energy on July 1, 2021. Under the leadership of Claudio Facchin as CEO and Yoshihiko Kawamura, Executive Vice President and Executive Officer, CFO of Hitachi, as the Chair of the Board of Hitachi Energy, the company will continue to expand Hitachi's energy solutions business globally as a core part of the company's Social Innovation Business.
*1 Press release dated December 17, 2018: "Hitachi to Strengthen Energy Solutions Business with the Acquisition of ABB's Power Grids Business"
*2 Press release dated July 1, 2020: "Hitachi ABB Power Grids commences operations"
Hitachi ABB Power Grids commences operations (hitachienergy.com)
*3 Press release dated July 1, 2021: "Hitachi ABB Power Grids is evolving to become Hitachi Energy and broadens commitment to a sustainable energy future"
Hitachi ABB Power Grids is evolving to become Hitachi Energy and broadens commitment to a sustainable energy future
*4 Press release dated October 13, 2021: "Hitachi Energy goes live"
Hitachi Energy goes live