ABB has announced an agreement to create a joint venture (JV) with Mitsubishi Electric’s low-voltage power distribution product business, aimed at enhancing its presence in Asian markets.
Under the terms of the transaction, ABB will pay around $495m (Y79bn) to acquire a 51% controlling interest in the newly formed entity carved out from Mitsubishi Electric, along with complete ownership of related sales operations outside Japan.
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The deal includes an option for ABB to assume full ownership in the mid-term, and is expected to complete in the second half of 2027, subject to regulatory clearance as well as customary closing conditions.
The planned JV is intended to combine ABB’s technology and international sales reach with Mitsubishi Electric’s established footprint in Asia, particularly in Japan.
ABB’s electrification business currently has a limited market share in Japan. The move is expected to enhance the company’s position within one of the world’s largest electrification markets and increase its ability to expand in the broader Asia-Pacific region.
ABB will contribute its technology portfolio and global distribution capabilities, while Mitsubishi Electric brings long-standing customer relationships, product expertise and a significant local manufacturing presence.
ABB electrification business area president Giampiero Frisio 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.”
Mitsubishi Electric’s power distribution business employs approximately 2,800 people, with manufacturing facilities in Hanoi, Vietnam, and Fukuyama, Japan.
Its product range covers contactors, control devices, energy measurement and monitoring equipment, low-voltage circuit breakers, motor starters, switches and uninterruptible power supply systems.
Both companies suggest the collaboration will allow them to deliver a broader offering to customers and tap further into growth opportunities across the Asia-Pacific region.
