ABB Expands Its Low-Voltage Electrification Business in Asia

Zurich, Switzerland — October 20, 2026 — ABB has announced plans to invest JPY 79 billion (approximately US$495 million) to acquire a controlling 51% stake in a joint venture to be established with Mitsubishi Electric's low-voltage power distribution product business.

The transaction is intended to strengthen ABB's position in Japan and expand its access to key growth markets across the Asia-Pacific region. Under the agreement, ABB will acquire a majority stake in the newly carved-out business and take full ownership of the related Mitsubishi Electric sales operations for low-voltage power distribution products outside Japan.

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 combines ABB's electrical technology portfolio and international sales network with Mitsubishi Electric's established customer relationships, manufacturing capabilities and experience in low-voltage power distribution.

Mitsubishi Electric's Low-Voltage Product Portfolio

Mitsubishi Electric's low-voltage power distribution business serves industrial, commercial and infrastructure applications. According to ABB, the portfolio includes several important categories of electrical equipment:

• Low-voltage circuit breakers: Protect electrical circuits against overloads and short circuits.

• Switches and switching devices: Support electrical distribution, isolation and switching operations.

• Contactors and motor starters: Enable the switching and control of motors and other electrical loads.

• Electrical control devices: Support the operation and control of electrical systems.

• Energy measurement and monitoring equipment: Help operators monitor electrical parameters and power consumption.

• Uninterruptible power supply (UPS) systems: Provide backup power for supported loads when the main supply is interrupted.

These products are used across manufacturing facilities, industrial control panels, commercial buildings and critical infrastructure.

By combining the two companies' resources, the joint venture is expected to offer a broader range of low-voltage power distribution and protection solutions to customers in Japan and other Asian markets.

Strengthening ABB's Presence in Japan and Asia-Pacific

Japan is a key strategic market for the transaction. ABB expects the joint venture to significantly strengthen its electrification business in the country, where Mitsubishi Electric has built an established position in low-voltage power distribution.

The agreement also creates opportunities to expand sales across Asia-Pacific. The related sales operations outside Japan account for approximately 15% of the contributed business's revenue, providing an additional channel for ABB's regional expansion.

The partnership will follow ABB's local-for-local approach, which emphasizes serving customers through production and supply capabilities located close to important markets.

By combining ABB's global distribution network with Mitsubishi Electric's customer base and manufacturing footprint, the companies aim to expand market access and introduce a broader range of electrical technologies to existing customers.

For industrial equipment distributors and system integrators, the development highlights the continued importance of low-voltage electrical protection, power distribution and monitoring solutions in industrial modernization and infrastructure investment.

Financial Details of the JPY 79 Billion Transaction

ABB's announcement provides several key financial details about the proposed joint venture.

• Investment amount: JPY 79 billion, approximately US$495 million.

• ABB ownership: 51% controlling stake.

• Expected transaction closing: Second half of 2027.

• Mitsubishi Electric low-voltage business revenue: Approximately JPY 102 billion in fiscal year 2025, which ended in March 2026.

• Enterprise value of the combined businesses: Approximately US$890 million.

• Profitability target: ABB expects the joint venture to achieve an Operational EBITA margin of at least 20% within five years.

The revenue figure refers to the contributed low-voltage power distribution business, not Mitsubishi Electric's entire corporate revenue.

ABB expects the combination to generate synergies through broader sales channels, the introduction of ABB technologies to Mitsubishi Electric's customer base and manufacturing optimization. The profitability target is a company forecast, not a guaranteed result.

The agreement remains subject to regulatory approvals and other closing conditions. The transaction should therefore be described as announced or planned until completion is confirmed.

What the Joint Venture Could Mean for Industrial Equipment Buyers

The planned transaction could influence the competitive landscape for low-voltage electrical equipment in Japan and across Asia-Pacific.

For industrial manufacturers, panel builders and system integrators, the potential benefits include access to a broader product portfolio and stronger regional sales and service capabilities. The combination could also create opportunities to integrate electrical protection, motor control and power monitoring products into more comprehensive industrial electrical systems.

However, the announcement does not confirm immediate changes to product specifications, pricing, manufacturing locations, delivery schedules or existing distribution agreements.

Businesses currently using ABB or Mitsubishi Electric equipment should continue to verify exact model numbers, electrical ratings, technical documentation, certifications and product availability through the relevant manufacturer or authorized distributor.

For maintenance and procurement teams, spare-part compatibility and lifecycle support remain important considerations when planning equipment replacements or upgrading installed electrical systems.

Outlook for the Industrial Electrical Equipment Market

ABB's planned investment reflects the strategic value of low-voltage power distribution as industrial facilities, commercial buildings and data centers continue to develop their electrical infrastructure.

Reliable circuit protection, switching, motor control and power monitoring equipment remain essential components of industrial electrical systems. As suppliers expand their regional capabilities, the ability to provide suitable products and dependable technical support will remain important for equipment buyers.

The proposed joint venture gives ABB a pathway to strengthen its presence in Japan while expanding access to Mitsubishi Electric's established low-voltage product business and customer relationships across Asia-Pacific.

The next major milestone is the planned transaction closing in the second half of 2027. Until then, the expected benefits will depend on regulatory approval, operational integration and the companies' execution of their growth plans.

For the industrial automation and electrical equipment sector, the agreement is a significant development in the low-voltage power distribution market and a clear indication of ABB's commitment to expanding its electrification business in Asia.