ABB has agreed to acquire a 51% controlling stake in a newly established joint venture with Mitsubishi Electric Corporation’s low-voltage power distribution product business. The venture will focus on low-voltage electrical solutions for Japan and other Asian markets, strengthening ABB’s presence in the region.
ABB will pay JPY 79 billion, equivalent to approximately $495 million, for the controlling stake and full ownership of the related sales operations outside Japan for Mitsubishi Electric’s low-voltage power distribution products. The transaction includes an option for ABB to acquire full ownership in the medium term. Completion is expected in the second half of 2027, subject to regulatory approvals and customary closing conditions.
The joint venture will combine ABB’s technology portfolio and international sales network with Mitsubishi Electric’s established customer base, manufacturing capabilities and market knowledge. The arrangement is expected to expand ABB’s position in Japan, one of the world’s major electrification markets, and support growth across Asia-Pacific.
Mitsubishi Electric’s power distribution business employs around 2,800 people and operates dedicated manufacturing facilities in Fukuyama, Japan, and Hanoi, Vietnam. Its products include low-voltage circuit breakers, switches, motor starters, contactors, control devices, energy measurement and monitoring equipment, and uninterruptible power supply systems.
In the financial year ended March 2026, the business generated net sales of approximately JPY 102 billion, or around $640 million, with a low double-digit EBITDA margin. Sales operations outside Japan account for approximately 15% of revenue. The combined businesses have an estimated enterprise value of around $890 million, representing approximately 1.4 times sales and 11.1 times EBITDA based on FY2025 figures.
ABB expects operational synergies to reduce the implied EV/EBITDA multiple to the mid-to-high single-digit range. The company expects the joint venture to become earnings-per-share accretive after the first year and achieve an operational EBITA margin of at least 20% within five years. Giampiero Frisio, President of ABB’s Electrification Business Area, said the partnership would combine Mitsubishi Electric’s local expertise with ABB’s technologies and global reach, providing customers with a broader range of low-voltage solutions.
Takayuki Tsuzuki, Senior Executive Officer and Group President of Mitsubishi Electric’s Factory Automation Systems, said the venture would build on the company’s established technology, product quality and customer relationships to develop its power distribution business. The partnership follows ABB’s local-for-local strategy, which focuses on manufacturing and sourcing closer to customers in key markets.
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By combining engineering expertise with digital technologies, ABB helps industries improve performance while becoming more efficient, productive and sustainable. With more than 140 years of history and approximately 110,000 employees worldwide, ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB).
Founded in 1921, Mitsubishi Electric manufactures electrical and electronic equipment for sectors including energy, utilities, factory automation, automotive, building systems, air conditioning, defence and semiconductors. The company has more than 200 group companies and approximately 150,000 employees worldwide.
