ABB completed its previously announced divestiture of the remaining 19.9% stake in Hitachi Energy joint venture to Hitachi, Ltd. According to the press release, ABB has realized a net positive cash inflow of approximately $1.425 billion in the fourth quarter of 2022 as part of the divestment.
The Hitachi Energy joint venture (formerly Hitachi ABB Power Grids) was formed in 2020 following ABB’s divestment of 80.1% of its Power Grids business to Hitachi. ABB held a pre-defined option to exit the remaining stake by 2023.
According to the release, the divestment helps ABB focus entirely on industrial customers. The company will be able to focus more on key market trends and customer needs of electrification of transport and industry, automated manufacturing, digital solutions and increased sustainable productivity. As part of its portfolio management strategy, in October 2022, ABB completed the spin-off of its turbocharging unit, Accelleron. The spin-off helps the company focus on growing global megatrends in electrification and automation. In November 2021, the company divested its Mechanical Power Transmission division (Dodge) for $2.9 billion. ABB used the proceeds to fund organic growth and reward shareholders through share buybacks.