ZURICH (dpa-AFX) - ABB Ltd. (ANN.L, ABB), a Swiss technology firm, said on Friday that it has signed a deal to sell its remaining 19.9 percent stake in the Hitachi Energy joint venture, to Hitachi, Ltd., for $1.679 billion.
The deal follows Hitachi exercising its call option agreed in 2018. The JV was formed from ABB's Power Grids business in 2020, in which Hitachi owns 80.1 percent shares.
The Swiss firm said it does not expect to post any major gain or loss as a result of the transaction, which is expected to be closed in the fourth quarter.
ABB expects net positive cash inflows of around $1.425 billion upon the closing of the transaction.
Timo Ihamuotila, CEO of ABB, said: '.This will further strengthen our balance sheet and give us additional flexibility in our capital allocation decisions.'
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