Mitsubishi Electric Forms Joint Venture with ABB for Distribution Control

Mitsubishi Electric Corporation is restructuring its distribution control equipment business through a joint venture with ABB Ltd., transferring a 51% stake to the Swiss technology company for ¥82.4 billion. The move, announced on October 20, 2026, is intended to bolster the competitiveness and accelerate growth in the sector by leveraging the combined strengths of both organizations.

The joint venture will encompass the development, manufacturing, sales, and service of low-voltage circuit breakers, electromagnetic switches, measuring control equipment, and uninterruptible power supplies (UPS) – specifically those under 5kVA for general industrial use. It will also include sales and service of some high-voltage distribution control equipment, as well as the development and manufacturing of smart meters. Mitsubishi Electric’s current business segment, categorized within “Industry & Mobility,” generates approximately ¥102.2 billion in sales, according to internal company figures.

The rationale behind the partnership, according to Mitsubishi Electric, is to secure a “best partner” for joint operation and strengthen global competitiveness. ABB brings established technology and a global sales network to the table, complementing Mitsubishi Electric’s existing technical expertise, quality, customer base, and sales channels. Management anticipates the synergy will lead to enhanced product offerings and expanded global reach. The deal includes a transfer of overseas sales subsidiaries to ABB’s local entities in respective regions.

The company anticipates recognizing approximately ¥900 billion in other income related to the stake transfer in the fiscal year ending March 2028, though the transaction’s impact on the current fiscal year (ending March 2027) is expected to be negligible. The completion of the joint venture and share transfer is contingent upon regulatory approvals and the fulfillment of contractual prerequisites. The company expects the company split to be executed by October 1, 2027.

Mitsubishi Electric’s 2026 fiscal year performance shows a revenue of ¥5,894.747 billion and operating profit of ¥433.095 billion. The company’s stock is traded on the Tokyo Stock Exchange (TSE) under the code 6503.