ABB has announced plans to establish a joint venture with Mitsubishi Electric to strengthen its presence in Japan and accelerate growth across the Asia-Pacific region. Under the agreement, ABB will acquire a 51% controlling stake in the newly established company for approximately JPY 79 billion, or around US$495 million.
The transaction will combine Mitsubishi Electric’s carved-out low-voltage power distribution business with ABB’s electrification technologies and global sales network. ABB will also take full ownership of the related sales operations outside Japan for Mitsubishi Electric’s low-voltage power distribution products.
The deal is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions. ABB will also have an option to acquire full ownership of the joint venture in the medium term.
The partnership is expected to significantly expand ABB’s position in Japan’s electrification market, where the company currently has a relatively limited presence. By combining Mitsubishi Electric’s established customer relationships, local expertise and manufacturing capabilities with ABB’s technology portfolio and international distribution network, the companies aim to create a stronger platform for growth across Asia-Pacific.
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The new company will offer a broad portfolio of low-voltage power distribution and protection solutions. Products will include circuit breakers, switches, motor starters, contactors, control devices, energy measurement and monitoring equipment, as well as uninterruptible power supply (UPS) systems.
Mitsubishi Electric’s power distribution business employs approximately 2,800 people and operates manufacturing facilities in Fukuyama, Japan, and Hanoi, Vietnam. These operations will provide the joint venture with an established regional manufacturing and supply infrastructure.
Giampiero Frisio, President of ABB’s Electrification Business Area, said the partnership would combine Mitsubishi Electric’s deep local expertise with ABB’s technologies and global reach. He added that the arrangement would strengthen the companies’ position in Japan and across Asia-Pacific while providing customers with access to a broader portfolio of low-voltage solutions.
Takayuki Tsuzuki, Senior Executive Officer and Group President of Factory Automation Systems at Mitsubishi Electric, said the company’s power distribution business has developed its technology and quality capabilities over around 100 years. He said the partnership would combine ABB’s global business platform with Mitsubishi Electric’s technology, customer base and sales channels.
The joint venture also supports ABB’s local-for-local strategy, which focuses on manufacturing and sourcing products closer to customers in key markets. The combined footprint is expected to help the companies improve regional supply capabilities while allowing ABB to introduce its technologies to Mitsubishi Electric’s established customer base.
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Mitsubishi Electric’s low-voltage power distribution business recorded approximately JPY 102 billion (US$640 million) in net sales in the financial year ended March 2026, with a low double-digit EBITDA margin. Sales operations outside Japan accounted for about 15% of its revenue.
The transaction values the combined businesses at an estimated enterprise value of around US$890 million, marking a significant expansion of ABB’s electrification strategy in Japan and the wider Asia-Pacific market.