ABB on 20 October 2026 agreed to pay about ¥79bn (US$495m) for a 51% stake in a new company holding Mitsubishi Electric's low-voltage power distribution and control equipment business, in a deal valuing the business at about US$890m.
Why ABB Ltd (via ABB K.K.) is buying Mitsubishi Electric power distribution and control equipment business (51% of carve-out JV)
ABB says the joint venture will turn its small Japanese Electrification presence into market leadership in low voltage. It combines Mitsubishi Electric's customer base, quality and local manufacturing with ABB's technology and global sales network. ABB expects the venture to add to earnings per share after year one and to reach an operational EBITA margin of at least 20% within five years. Mitsubishi Electric says it needs a partner to stay competitive abroad, where electrification is driving both demand and competition.
Deal terms and financing
Mitsubishi Electric will set up a wholly owned company on 1 December 2026 and transfer the business into it by absorption-type company split. ABB K.K. will then buy 51% of the shares, with Mitsubishi Electric keeping 49%. ABB will nominate five of the seven directors. Mitsubishi Electric's disclosure gives a transfer price of about ¥82.4bn based on FY2025 EBITDA and an agreed multiple, subject to adjustment. ABB will also take over Mitsubishi Electric's low-voltage sales operations outside Japan.
Regulatory approvals and timing
Completion depends on approvals from Japanese and overseas competition authorities and other conditions. Mitsubishi Electric plans to complete the split and the share transfer on 1 October 2027. ABB expects closing in the second half of 2027.
Market context
The business makes low-voltage circuit breakers, magnetic contactors, measurement and control devices and small UPS units, and had FY2025 sales of about ¥102bn. Mitsubishi Electric expects to book a gain of about ¥90bn in the year to March 2028. Days earlier it agreed to sell half of its automotive equipment unit to Hon Hai.
