A new $10bn transmission player arrived on the scene on Wednesday when Hitachi ABB Power Grids was formed as a joint venture between the two global technology groups.
The JV – first agreed as long ago as late 2018 under a $6.85bn deal– is 80% owned by Hitachi, with Swiss-based ABB holding the remainder.
Hitachi said then that the deal will marry ABB’s existing position in transmission and grids – which ranges from long-distance HVDC lines to transport wind power, to advanced microgrids to optimise solar – with its own expertise in digital technologies.
A statement confirming completion of the JV said Hitachi would “facilitate expansion opportunities for the new entity in areas such as mobility, smart cities, industry, energy storage and data centers, besides providing financial muscle to support ambitious projects and enabling access to Japan”.
The JV will be based in Zurich with the existing management team of the ABB grids operation under CEO Claudio Facchin running it “to ensure business continuity”.