ABB will sell only 80.1% of its stake in the business following which it will revamp its business structure.

Zurich-based ABB has reached a deal to sell its Power Grids business to Japan’s Hitachi for an undisclosed amount.

In a statement the Swiss engineering group stated, it plans on returning net cash proceeds of $7.6-7.8 billion from selling the 80.1% stake in the unit to shareholders.

ABB will initially retain a stake of 19.1% in the business. After the sale, it would modify the structure of remaining businesses, and aims to cut nearly $500 million in annual run-rate cost reductions across the group.

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