ABB to Pay $495M for 51% Stake in Asia-Pacific Low-Voltage Joint Venture with Mitsubishi Electric

ABB has agreed to pay JPY79 billion ($495 million) for a controlling 51 percent stake in a new Asia-Pacific low-voltage joint venture built on Mitsubishi Electric's power distribution business, a move that transforms the Swiss industrial group's limited footprint in Japan into a leading position in one of the world's largest electrification markets.

The transaction, announced Tuesday, also includes full ownership of Mitsubishi Electric's low-voltage sales operations outside Japan and is expected to close in the second half of 2027. Mitsubishi Electric's power distribution business employs about 2,800 people and operates manufacturing sites in Fukuyama, Japan, and Hanoi, Vietnam, producing low-voltage circuit breakers, switches, motor starters, contactors, control devices, energy measurement and monitoring equipment, and uninterruptible power supply systems. In the fiscal year ended March 2026, the business reported net sales of approximately JPY102 billion ($640 million), with sales operations outside Japan accounting for about 15 percent of revenue.

Giampiero Frisio, president of ABB's Electrification business area, said the venture combines Mitsubishi Electric's long-established local foundation with ABB's technology and global reach, providing continuity and wider opportunities for customers and employees. Takayuki Tsuzuki, senior executive officer and group president of factory automation systems at Mitsubishi Electric, said the joint venture will pair ABB's global business base with Mitsubishi Electric's technology, quality, customer base, and sales channels, enabling the company to grow its power distribution product business further.

For ABB, the deal represents a strategic bet on electrification demand across Asia-Pacific, where grid modernization, industrial automation, and data center buildout are driving sustained investment in low-voltage power distribution equipment. By acquiring control of Mitsubishi Electric's established manufacturing and sales network, ABB gains immediate scale in Japan and an expanded channel across the region, while Mitsubishi Electric retains a stake in a business it has cultivated for decades. The partnership structure allows both companies to share risk while leveraging complementary strengths in technology, distribution, and customer relationships.