ABB to pay $495 million for 51 percent stake in Mitsubishi venture

ABB will invest about $495 million for a 51% controlling stake in a joint venture built around Mitsubishi Electric’s carved-out low-voltage power distribution business, while Mitsubishi Electric retains 49%. ABB will also acquire full ownership of related sales operations outside Japan and has an option to take full ownership of the venture in the medium term. The deal combines Mitsubishi Electric’s products and established local business with ABB’s technology and global sales network, aiming to strengthen ABB’s position in Japan and expand across Asia-Pacific. The business employs about 2,800 people and makes equipment including circuit breakers, switches, control and measurement devices, and uninterruptible power supplies. The transaction is expected to close in the second half of 2027, subject to regulatory approvals; ABB expects the venture to reach an operational EBITA margin of at least 20% within five years.