ABB - ABB to offload remaining 19.9% stake in Hitachi Energy joint venture to Hitachi

• ABB ( NYSE: ABB ) to divest its remaining 19.9% equity stake worth $1.679B in the Hitachi Energy joint venture to Hitachi, Ltd. (Hitachi).
• This joint venture was formed from ABB’s Power Grids business in 2020, with Hitachi holding a stake of 80.1%.
• Hitachi has exercised its call option that was agreed between the parties in December 2018 .
• The company said it expects a net positive cash inflow of approximately $1.425B as a result of the sale.
• The transaction is subject to regulatory approvals and closing is expected in Q4.
• “We are delighted to have agreed on the final part of the transaction earlier than expected and on favorable terms. This will further strengthen our balance sheet and give us additional flexibility in our capital allocation decisions,” said Timo Ihamuotila, Chief Financial Officer of ABB.

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