Under the agreement announced October 20, ABB will acquire a 51% controlling stake in a company formed from Mitsubishi Electric's low-voltage power distribution business, together with full ownership of the related sales operations outside Japan. ABB disclosed total consideration of approximately 79 billion yen ($495 million). Source: ABB announcement.
Ownership and Transaction Terms
Mitsubishi Electric will retain 49% of the joint venture. ABB's Japanese subsidiary, ABB Corporation, will hold the majority interest, with an option for ABB to acquire full ownership in the medium term. Source: ABB ownership terms.
Mitsubishi Electric separately disclosed a planned 82.4 billion yen share-transfer price for the 51% interest, subject to contractual adjustments. That disclosure is distinct from ABB's stated consideration for the stake and overseas sales operations; the announcements do not reconcile the two figures. Source: Mitsubishi Electric transaction notice, page 7.
Business Scope and Manufacturing
The transferred business includes low-voltage circuit breakers, switches, motor starters, contactors, energy measurement equipment and industrial uninterruptible power supplies rated at 5 kVA or less. It also includes selected high-voltage equipment sales and services, plus smart-meter development and manufacturing. Source: Mitsubishi Electric business scope, page 2.
Approximately 2,800 employees work in the business, which operates manufacturing facilities in Fukuyama, Japan, and Hanoi, Vietnam. ABB said the partnership would expand its presence in Japan and improve access to Asia-Pacific markets by combining its technology and sales network with Mitsubishi Electric's manufacturing base and customer relationships. Source: ABB announcement.
Closing Planned for 2027
Mitsubishi Electric plans to complete the business separation and share transfer on October 1, 2027, within ABB's stated closing window of the second half of 2027. Completion remains subject to regulatory approvals and other customary conditions. The transaction has not closed. Source: Mitsubishi Electric transaction timetable, page 3.
In an October 21 correction, Mitsubishi Electric revised its expected accounting gain on the transfer from 900 billion yen to 90 billion yen, to be recognized in the fiscal year ending March 31, 2028. The correction concerns the accounting gain, not the purchase price. Source: Mitsubishi Electric correction.