ABB confirms talks with Hitachi on electrical networks business

Dec 12 (Reuters)-the Swiss Engineering Group ABB is in talks with the Japanese Hitachi about your business of electrical networks, which could be sold to the company to focus on more profitable divisions. ABB has negotiated with Hitachi, Mitsubishi Electric Corp. and China State Grid for the total or partial sale of the business, which produces electrical transformers and power substations, according to published by Reuters in November. "ABB confirms that it is currently in discussions with Hitachi to expand and redefine the strategic partnership in power networks between the two companies announced in December 2014," said the Swiss company said in a statement. ABB, which also produces industrial robots, intends to get rid of your least profitable Division to focus on areas like automation. " There is no certainty that any transaction will occur, or, for the moment, structure or terms of any transaction, "said ABB. The shares of the company were discharged after the announcement. A source familiar with the subject assessed in between 10 billion and 12 billion Division of ABB electrical networks, in which the company could maintain a slice, they say. The Japanese newspaper Nikkei published companies are close to a deal under which Hitachi would pay between 600 billion and 800 billion yen (5.29 billion dollars to 7.05 billion dollars) for a slice of home 50% in the business. A Hitachi spokesman said the company is not making any announcement and refused to comment. The business of electrical networks of ABB employs 36000 people and had sales of 10.4 billion dollars last year.