Mitsubishi Electric to form JV with ABB for low-voltage power distribution business

Mitsubishi Electric Corporation has announced that it has entered into a joint venture agreement with a subsidiary of ABB. The company will establish a wholly owned preparatory company and to implement an absorption-type company split to further grow and strengthen the competitiveness of power distribution business, including low-voltage circuit breakers, electromagnetic switches, measurement and control equipment and UPS, Mitsubishi Electric said in a press release.

Following the effective date of the Company Split, 51% of the shares of the new company will be transferred to ABB Corporation, a Japanese subsidiary of ABB. Through a series of these transactions, the new company will become a joint venture company owned 51% by ABB Corporation and 49% by Mitsubishi Electric.

The target business encompasses low-voltage circuit breakers, electromagnetic switches, measurement and control equipment, and UPS for general industrial use of 5kVA or less, and other products.   

“Currently, Mitsubishi Electric is well positioned in many product fields in Japan, supporting a stable supply of electricity and energy essential to society,” Takayuki Tsuzuki, Mitsubishi Electric Corporation’s Senior Executive Officer, Group President, Factory Automation Systems, said. “Through this joint venture with ABB, Mitsubishi Electric will combine ABB’s global business foundation with the technologies, quality, customer base and sales channels it has cultivated over many years.”  

“Japan is one of the world’s most important electrification markets, where Mitsubishi Electric’s low-voltage power distribution division has served customers and built deep expertise over many decades,” Giampiero Frisio, President of ABB’s Electrification Business Area, said. “This joint venture brings together that strong local foundation with ABB’s leading technologies and global reach, significantly strengthening our position in Japan and across Asia-Pacific.”