TOKYO (AFP) – Japan’s Hitachi and Swiss engineering giant ABB said Tuesday they will set up a joint venture to market power transmission equipment in Japan, as Tokyo deregulates the heavily protected sector.
The deal would see Hitachi and ABB take a 51 per cent and 49 per cent stake in the new business, respectively, they said in a joint statement.
“This is the first step of a strategic partnership between Hitachi and ABB to contribute to the evolution of Japan’s power network,” it said.
“Hitachi and ABB will explore further strengthening of the relationship and address opportunities to widen the scope for future collaboration.”
No financial details were released. Hitachi will appoint the new firm’s chief executive, Japan’s leading Nikkei business daily reported earlier, without citing sources. The news comes as Japanese Prime Minister Shinzo Abe, fresh from Sunday’s landslide parliamentary election victory that rekindled his political capital, pledged to pursue economic policies that include cutting red tape.