As explained in our announcement of December 17, 2018, ABB has taken the strategic step to expand their existing relationship with Hitachi by forming a power grids joint venture (the “Transaction”). The joint venture will include the global Power Grids business of the ABB Group, including power grid automation, power grid integration, high voltage products and transformers (the “Power Grids Business”), as well as the corresponding service offerings.
In Hitachi ABB has found a strong long-term partner for this unique and well-timed opportunity to strengthen the Power Grids Business as the partner of choice for a stronger, smarter and greener grid.
As ABB creates the global joint venture and commits to business and service continuity, it is also needed to adapt the legal structure. The future Power Grids Business will locally be organized into new legal entities (“ABB Power Grids Companies”), which will themselves be owned by a holding company incorporated under the laws of each country (the “Company”) (the “Reorganization”).
The Transaction is expected to be completed by the first half of 2020 and is still subject to regulatory approvals. By mid-2020, 80.1% of the Company will be transferred to Hitachi, and ABB has agreed not to divest its remaining 19.9% stake for at least three years after closing of the Transaction.
As part of the Reorganization, ABB will need to transfer all customer agreements of the Power Grids Business to the relevant new ABB Power Grids Company.
Global Product Group Semiconductors
Accordingly, all the customer agreements relating to the Power Grids Business conducted out of ABB Switzerland Ltd. and ABB s.r.o., will be transferred to:
- ABB Power Grids Switzerland Ltd., Bruggerstrasse 72, 5400 Baden (CHE-424.543.670)
- ABB Power Grids Czech Republic s.r.o., Průmyslová 137, Dolní Staré Město, 541 01 Trutnov
These transfers will not change any of the agreed upon terms and conditions of the existing agreement and will ensure a smooth continuity of our business relationship. Nothing will change for our customers, partners or suppliers from a business or service point of view.
Specifically, for all business with the Product Group Semiconductors in Prague, Czech Republic, effective as of October 1, 2019, please update your records as follows:
ABB Power Grids Czech Republic s.r.o.
Novodvorska 1768/138a
142 21, Prague 4
Czech Republic
Specifically, for all business with the Product Group Semiconductors in Lenzburg, Switzerland, effective as of November 1, 2019, please update your records as follows:
ABB Power Grids Switzerland Ltd.
Semiconductors
Fabrikstrasse 3
5600 Lenzburg
Switzerland
We trust that the above clarifies the reorganization of ABB Power Grids Business. If you have any questions, please contact directly Mr. Paul Willi at paul.willi@ch.abb.com
In the meantime, rest assured that ABB remains committed to continuing our strong relationship with all customers, partners and suppliers.
