GE and Hitachi, Ltd. have signed a formation agreement to proceed with previously announced plans to create a global alliance of their nuclear businesses.
WILMINGTON, N.C.--(BUSINESS WIRE)--GE (NYSE: GE) and Hitachi, Ltd. (NYSE: HIT)(TOKYO: 6501) have signed a formation agreement to proceed with previously announced plans to create a global alliance of their nuclear businesses. Based on this agreement, GE and Hitachi will form cross-shareholding companies in U.S., Canada and Japan, subject to government approvals.
The alliance, when formally completed, will combine GE and Hitachi's nuclear businesses to create one of the world's foremost nuclear power plant and services operations. The transaction is expected to close in the second quarter of 2007.
Under the formation agreement, GE and Hitachi will forge an alliance that will enable both companies, as well as their customers, to benefit from their combined capabilities and resources.
GE and Hitachi will capitalize on their decades of experience in new plant construction, such as proven modularization and standardization capabilities together with the latest generation reactors including GE's advanced ESBWR design.
With new reactor fleets being built or planned around the world, the transaction will bring together the type of experience, capacity, and capability that is vital to the delivery of new nuclear power plants on time, within budget and at the highest quality levels.
GE and Hitachi first announced their intent to create a nuclear business alliance in November 2006.
GE's nuclear business, which recently marked its 50th anniversary in the industry, develops advanced light water reactors and provides a wide array of technology-based products and services to help owners of both boiling and pressurized water reactors safely operate their facilities with greater efficiency and output.
Hitachi has regarded nuclear power systems to be a core business of the Hitachi Group ever since establishing a nuclear systems group at the Hitachi Works in 1955. Since entering into a technology licensing agreement with GE in 1967, Hitachi has worked with GE in the fields of BWR plant construction and maintenance services for BWR plants in operation.
About GE Energy
GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2006 revenue of $19 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
About Hitachi
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 356,000 employees worldwide. The company offers a wide range of systems, products and services in market sectors including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
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