By Pierre Bertrand
ABB Ltd said Friday that it has agreed to divest its remaining 19.9% stake in joint venture Hitachi Energy to Hitachi Ltd.
The JV was formed in 2020 between the Swiss technology company's power grids business and Hitachi. The Japanese electrical equipment manufacturer holds an 80.1% stake in the venture and has exercised a call option worth $1.68 billion for the remaining shares, ABB said.
ABB said it expects a net positive cash inflow of approximately $1.43 billion as a result of the sale. The transaction is subject to regulatory approvals and closing is expected in the fourth quarter of the year.
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(END) Dow Jones Newswires