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Hitachi, Mitsubishi sign agreements for hydropower business merger

Hitachi Ltd., Mitsubishi Electric Corporation and Mitsubishi Heavy Industries Ltd. have entered into a basic agreement calling for the three companies to consolidate their hydroelectric power generation system operations by way of simplified absorption-type company splits of their respective operations and the transfer of those operations to Hitachi subsidiary HM Hydro Ltd.

The Japanese companies first announced plans to merge hydroelectric operations in July last year.

A part of the agreements, shares in HM Hydro have been allocated as follows: 44.7 percent to Hitachi, 33.2 percent to Mitsubishi Electric, with the remaining 22.1 percent to MHI, a press release states.

Under the deal, the companies will transfer all marketing, installation and after-sale services pertaining to the water turbines, generators, and auxiliary controllers and other equipment and devices that comprise hydroelectric power generation facilities and equipment. They will also transfer systems engineering and development and design of core components.

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