ABB to Buy 51% Stake in Mitsubishi Electric Low-Voltage JV for JPY 82.4 Billion

ABB Ltd. (ABB.ST, ABBNY) announced Tuesday it will acquire a 51% controlling stake in a low-voltage power distribution joint venture with Mitsubishi Electric Corp. (6503.T) for JPY 82.4 billion, or about $516 million. The transaction is expected to close in the second half of 2027. The new entity is slated to be established December 1, with business transfer and closing set for October 1, 2027. Mitsubishi Electric will retain 49%. The business, covering circuit breakers, switches, measurement and control equipment, and uninterruptible power supplies, posted net sales of roughly JPY 102.2 billion in the fiscal year ended March 2026 and employs about 2,800 people. ABB expects the deal to be accretive to earnings per share after the first year and to reach an operational EBITA margin of at least 20% within five years. Mitsubishi Electric anticipates a gain of approximately JPY 90 billion in the fiscal year ending March 2028. ABB closed Monday down 1.38% at SEK 897.40 in Stockholm.