Hitachi Ltd. said Monday it has reached a deal to purchase the power grid business of Swiss engineering group ABB Ltd., initially investing $6.4 billion for an 80.1 percent stake before a complete takeover in the future.
The deal, Hitachi's biggest-ever acquisition, would strengthen the electronics maker's competitiveness in the power transmission business against General Electric Co. and Siemens AG.
Hitachi said it will close the deal to acquire the 80.1 percent stake around the first half of 2020. After the transaction is settled, Hitachi will buy up the remaining stake in four or more years.