ABB, Zurich, Switzerland, on Wednesday announced the completion of the divestment of 80.1 percent of its Power Grids business to Hitachi. The deal was valued at $7.6 billion to $7.8 billion.

The company said the divestment allows it to focus on key market trends and customer needs such as the electrification of transport and industry, automated manufacturing, digital solutions and increased sustainable productivity.

“Today’s announcement marks an important turning point in the history of ABB,” said Peter Voser, chairman of the board of directors. “Since announcing our intention to divest Power Grids to Hitachi, ABB has made significant progress in becoming a more customer-focused and simplified organization. We believe Hitachi is the best owner for Power Grids and its next stage of development, building on the solid foundation achieved under ABB’s previous ownership. ABB remains committed to using net cash proceeds from the transaction for a share buyback program. Our goal is to execute this in an efficient and responsible way, taking account of the prevailing circumstances.”

“With the divestment, ABB is well positioned for the future with a strong focus on industrial customers,” added Björn Rosengren, CEO. “Leveraging our technology leadership and passion for innovation, we will now focus on creating superior value for our customers, employees and shareholders. We will do this by evolving our decentralized business model, strengthening our performance management culture and driving active portfolio management.”

ABB is a long-term partner of Hitachi and will initially retain a 19.9 percent equity stake in the joint venture that will operate as Hitachi ABB Power Grids and be headquartered in Switzerland.