ABB Takes 51% Stake in Mitsubishi Electric's Low-Voltage Business for $495 Million

ABB announced a joint venture with Mitsubishi Electric's carved-out low-voltage power distribution product business, investing JPY 79 billion, about $495 million, for a 51 percent controlling stake. The deal is expected to close in the second half of 2027, subject to regulatory approvals, TradingView reported.

ABB's Stake in the Mitsubishi Electric Carve-Out

The new company combines ABB's technology and global sales network with Mitsubishi Electric's market presence in Japan. ABB will also acquire full ownership of the related sales operations outside Japan of Mitsubishi Electric's low-voltage power distribution products. The transaction provides an option for full ownership by ABB in the mid-term.

Mitsubishi Electric's power distribution business employs around 2,800 people, with 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.

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."

Takayuki Tsuzuki, Mitsubishi Electric Corporation's Senior Executive Officer, Group President, Factory Automation Systems, said: "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."

ABB's Electrification Scale Behind the Deal

According to akta.pro company records, ABB reported full-year 2025 revenues of $33.2 billion, against order intake of $36.8 billion and a backlog of approximately $9.3 billion. The same records show Q1 2026 orders up 32 percent, revenue up 18 percent and operating profit up 37 percent, with a book-to-bill ratio of 1.29.

Earlier ABB Moves in Electrification

In October 2026, ABB expanded its Mississippi facility in Senatobia, marking 10 years in the state, with employees rising from 45 to 2,000 and production increasing sixfold, Yahoo reported. In June 2026, ABB launched the Proteus PV and BESS portfolio with 4.7 MVA central inverters at 99.45 percent efficiency, according to akta.pro records. In June 2026, SoftBank agreed to acquire ABB's Robotics & Discrete Automation division for approximately $5.4 billion, the same records show.

What Comes Next for the Joint Venture

The transaction is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions. 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.