ABB joint venture with Mitsubishi Electric to expand position in Asia-Pacific markets
Published on 10/20/2026 at 06:45 | dgap, AD HOC NEWS| ABB Ltd / Key word(s): Joint Venture 20.10.2026 / 06:45 CET/CEST ZURICH, SWITZERLAND, OCTOBER 20, 2026 Joint venture will transform ABB’s electrification position in Japan and expand access to key growth markets across Asia-Pacific $495 million investment will further strengthen global leadership in low-voltage power distribution and protection ABB to hold controlling 51 percent stake in a joint venture formed with Mitsubishi Electric’s carved-out low-voltage power distribution product business ABB today announced the creation of a joint venture with Mitsubishi Electric’s carved-out low-voltage power distribution product business, forming a new company focused on low-voltage solutions for Asian markets. For a consideration of JPY 79 billion (~$495 million), ABB will acquire a controlling 51 percent stake in the newly carved out company as well as full ownership of the related sales operations outside of Japan of Mitsubishi Electric’s low-voltage power distribution products. The transaction, which provides an option for full ownership by ABB in the mid-term, is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions. The new company brings together ABB’s technology and global sales network with Mitsubishi Electric’s established market presence. It will transform the limited presence of ABB’s Electrification business area in Japan into a leading position in one of the world’s largest electrification markets, while strengthening ABB’s ability to grow across Asia-Pacific. Giampiero Frisio, President of ABB’s Electrification Business Area, said: “Japan is one of the world’s most important electrification markets, where the people in Mitsubishi Electric’s low-voltage power distribution division have served customers and built deep expertise over many decades. This joint venture brings together that strong local foundation with ABB’s leading technologies and global reach, significantly strengthening our position in Japan and across Asia-Pacific. For customers and employees, it means continuity, greater opportunities, and access to a broader portfolio of low-voltage solutions. For ABB, this partnership brings together the best of both companies in a long-term commitment to growth in the region.” Takayuki Tsuzuki, Mitsubishi Electric Corporation’s Senior Executive Officer, Group President, Factory Automation Systems, said: “Mitsubishi Electric’s power distribution business has continued to improve its technological and quality capabilities over the past 100 years. Currently, Mitsubishi Electric is well positioned in many product fields in Japan, supporting a stable supply of electricity and energy essential to society. Through this joint venture with ABB, Mitsubishi Electric will combine ABB’s global business foundation with the technologies, quality, customer base and sales channels it has cultivated over many years. By doing so, we aim to provide even higher value to our customers and further grow and develop our power distribution product business.” Mitsubishi Electric’s power distribution business employs around 2,800 people, with dedicated manufacturing facilities in Fukuyama, Japan, and Hanoi, Vietnam. Its portfolio includes low-voltage circuit breakers, switches, motor starters, contactors and control devices, energy measurement and monitoring equipment, and uninterruptible power supply systems. The joint venture advances ABB’s well-established local-for-local strategy, sourcing and producing close to customers in key markets. By combining ABB’s products and global sales network with Mitsubishi Electric’s customer relationships and local manufacturing footprint, the joint venture will create a broader offer for customers in Asia-Pacific, while giving ABB the opportunity to introduce proven technologies to Mitsubishi Electric’s customer base. In FY2025 ending March 2026, Mitsubishi Electric’s Low-Voltage power distribution business achieved net sales of around JPY 102 billion (~$640 million) with a low double-digit EBITDA margin. The related sales operations outside of Japan represent approximately 15 percent of revenue. The transaction values the combined businesses at a total enterprise value (EV) of around $890 million and implies an EV/Sales multiple of around 1.4x and an EV/EBITDA multiple of around 11.1x based on FY2025. ABB expects synergies to improve the joint venture’s earnings, reducing the implied EV/EBITDA multiple to the mid- to high- single-digit range. ABB expects the joint venture to be accretive to earnings per share after year one and to achieve an operational EBITA margin of at least 20 percent within five years, comparable with other ABB Electrification operations. ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com Mitsubishi Electric Corporation (TOKYO: 6503) is guided by its corporate philosophy, and places sustainability at the core of its operations and values stakeholder trust—encompassing society, customers, shareholders and employees. In pursuing profitability, capital efficiency and growth, Mitsubishi Electric works closely alongside customers to develop value-added solutions that address today’s complex challenges while enhancing the company’s sustainable corporate value. Founded in 1921, Mitsubishi Electric has over a century of experience in delivering reliable, high-quality products and solutions. With over 200 group companies and approximately 150,000 employees worldwide, the company is a recognized global leader in manufacturing, marketing and selling electrical and electronic equipment and systems across a broad range of sectors, including public utility systems, energy systems, defense and space systems, factory automation systems, automotive equipment, building systems, air conditioning systems & home products, digital innovations, and semiconductor & devices. Mitsubishi Electric recorded consolidated revenue of 5,894.7 billion yen (U.S.$ 36.8 billion*) in the fiscal year that ended on March 31, 2026. For more information, please visit www.MitsubishiElectric.com *JPY 160 = USD 1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2026 End of Media Release View original content: EQS News |
| Language: | English |
| Company: | ABB Ltd |
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| Phone: | +41 43 317 7111 |
| Internet: | www.abb.com |
| ISIN: | CH0012221716 |
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| EQS News ID: | 2418328 |
| End of News | EQS News Service |
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