On June 4, 2007, GE and Hitachi, Ltd. completed the first half of their agreement to form a global alliance of their nuclear businesses, creating one of the world's most comprehensive nuclear power plant and services operations that will compete for new reactor projects around the world.
The global business that will operate throughout the world, excluding Japan, is called "GE-Hitachi Nuclear Energy". It is 60% owned by GE and 40% by Hitachi, and will be led by the executives of GE's current nuclear business.
With climate change and energy security concerns driving a global resurgence in support for nuclear energy, GE and Hitachi are combining their nuclear businesses to become the world's foremost provider of advanced boiling water reactor (BWR) plants and related services. The newly allied businesses will also offer key equipment and services for pressurized water reactors (PWRs), another light-water reactor design popular in certain countries.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 384,000 employees worldwide. Fiscal 2006 (ended March 31, 2007) consolidated revenues totaled 10,247 billion yen ($86.8 billion). 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.
GE 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.
Hitachi was advised on Canadian aspects of this transaction by Fasken Martineau with a team that included, among others, Sean Stevens (corporate), Tony Baldanza and Mark Magro (competition), Dan Law (real estate), and Mitchell Thaw and David Robertson (tax).