The Japanese companies first announced their plans to pool resources and engage jointly in hydroelectric operations in July last year. Under the new agreement, they have agreed to establish a preparatory company in May 2011 as a subsidiary of Hitachi (tentatively called HM Hydro Ltd), and will transfer their hydroelectric operations by way of simplified company split.
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.
At the time of establishment, the preparatory company will be 98% owned by Hitachi, with Mitsubishi Electric and Mitsubishi Heavy Industries each taking a 1% stake, although changes are planned to take effect from 1 October 2011.
