ABB and Mitsubishi Electric Announce Low-Voltage Power Distribution Joint Venture

Zurich, Switzerland — October 20, 2026 — ABB has announced a joint venture with Mitsubishi Electric's low-voltage power distribution product business, committing approximately $495 million to acquire a 51% controlling stake in the newly formed company.

The transaction is designed to strengthen ABB's position in Japan, one of the world's major electrification markets, while expanding its access to growth opportunities across the Asia-Pacific region. The agreement also covers full ownership of the related Mitsubishi Electric sales operations for low-voltage power distribution products outside Japan.

According to ABB's announcement, the transaction is expected to close in the second half of 2027, subject to regulatory approvals and customary closing conditions. ABB will also have an option to acquire full ownership of the joint venture in the medium term.

The planned partnership will combine ABB's electrical technology portfolio and global sales network with Mitsubishi Electric's established customer relationships, manufacturing capabilities and market presence in Japan and other Asian markets.

Mitsubishi Electric's Low-Voltage Product Portfolio

Mitsubishi Electric's low-voltage power distribution business supplies electrical components used in industrial facilities, commercial buildings and infrastructure projects.

The portfolio includes:

• Low-voltage circuit breakers: Devices designed to protect electrical circuits against overloads and short circuits.

• Switches and switching devices: Components used for electrical isolation, distribution and system control.

• Contactors and motor starters: Equipment for switching and controlling industrial motors and other electrical loads.

• Control devices: Components supporting electrical control and equipment operation.

• Power measurement and monitoring equipment: Products used to measure electrical parameters and monitor power consumption.

• Uninterruptible power supply (UPS) systems: Equipment designed to provide backup power to supported loads during interruptions in the main supply.

These products are relevant to a wide range of applications, including manufacturing plants, industrial control panels, building electrical systems and critical infrastructure.

By combining the businesses, ABB aims to expand the range of low-voltage solutions available through its global commercial network while building on Mitsubishi Electric's established product expertise and customer base.

Japan and Asia-Pacific Become Key Growth Priorities

Japan is a major target of the transaction. ABB said the joint venture would substantially strengthen its position in the country's low-voltage power distribution market.

The deal also supports ABB's broader strategy of expanding its presence in Asia-Pacific, where demand for electrical infrastructure is influenced by industrial modernization, building electrification, infrastructure investment and data center development.

The agreement includes Mitsubishi Electric's related sales operations outside Japan, which account for approximately 15% of the business's revenue. This provides ABB with an additional channel for expanding low-voltage product sales in regional markets.

The companies expect to combine their respective technologies, sales capabilities and manufacturing operations to pursue growth and improve profitability. ABB has stated that it expects the joint venture to achieve an Operational EBITA margin of at least 20% within five years, supported by anticipated synergies.

This profitability target is a company expectation rather than a guaranteed outcome, and its achievement will depend on execution, market conditions and the realization of projected benefits.

Deal Valuation and Financial Details

The transaction represents a significant strategic investment in low-voltage electrical distribution and protection equipment.

Key details announced by ABB include:

• Investment: Approximately $495 million, equivalent to JPY 79 billion.

• ABB ownership: 51% controlling stake in the joint venture.

• Expected closing: Second half of 2027.

• Transaction valuation: Approximately $890 million in total enterprise value for the combined businesses.

• Future ownership option: ABB may acquire full ownership in the medium term.

• Revenue of Mitsubishi Electric's contributed business: Approximately JPY 102 billion in fiscal year 2025, equivalent to around $640 million.

The transaction remains subject to regulatory approvals and other customary closing conditions. Until completion, the announcement should not be interpreted as confirmation that ownership of the business has already transferred.

Potential Impact on Industrial Electrical Equipment Buyers

For industrial equipment buyers, distributors and system integrators, the joint venture could reshape the competitive landscape for low-voltage power distribution products in Japan and across Asia-Pacific.

The combination of ABB's international distribution capabilities and Mitsubishi Electric's established product portfolio may create additional opportunities for customers seeking circuit protection, motor control, electrical monitoring and backup power solutions.

However, the announcement does not establish that product specifications, prices, production locations, delivery lead times or existing supply arrangements will change immediately.

Customers using Mitsubishi Electric or ABB equipment should continue to verify product model numbers, technical documentation, certifications, spare-part availability and compatibility with existing installations through the relevant manufacturer or authorized distributor.

For procurement teams, these practical considerations remain important when planning equipment upgrades, maintenance programs or new electrical infrastructure projects.

Outlook: A Stronger Position in Low-Voltage Electrification

ABB's planned joint venture with Mitsubishi Electric reflects the strategic importance of low-voltage power distribution in industrial electrification and infrastructure development.

As industrial facilities, commercial buildings and data centers require reliable electrical protection and distribution, manufacturers are seeking broader product portfolios and stronger regional support networks.

The proposed partnership gives ABB a route to expand its position in Japan while improving access to Mitsubishi Electric's established low-voltage product business across Asia-Pacific. For Mitsubishi Electric, the arrangement provides access to ABB's global business network and technologies while supporting the continued development of its power distribution products.

The next major milestone will be completion of the transaction, currently expected in the second half of 2027. Until then, the long-term commercial impact will depend on integration planning, regulatory approval and the companies' ability to deliver the anticipated operational and sales benefits.