ABB will pay JPY79 billion ($495 million) for a controlling 51 percent stake in a new Asia-Pacific low-voltage joint venture with Mitsubishi Electric’s power distribution business.

In a statement on Tuesday, Switzerland-based ABB said the venture will turn its limited presence in Japan into a leading position in one of the world’s largest electrification markets. It will also strengthen its ability to grow across the region.

The deal includes full ownership of Mitsubishi Electric’s low-voltage sales operations outside Japan. It is expected to close in the second half of 2027.

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. The deal can provide 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 combine ABB’s global business base with Mitsubishi Electric’s technology, quality, customer base, and sales channels. It will allow the company to grow the power distribution product business further.

Mitsubishi Electric’s power distribution business employs about 2,800 people and has manufacturing sites in Fukuyama, Japan, and Hanoi, Vietnam. Its products include low-voltage circuit breakers, switches, motor starters, contactors, control devices, energy measurement, monitoring equipment, and uninterruptible power supply systems.

In the fiscal year ended March 2026, Mitsubishi Electric’s low-voltage power distribution business reported net sales of about JPY102 billion ($640 million). Sales operations outside Japan account for about 15 percent of revenue.

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