ABB to pay $495 million for controlling stake in Mitsubishi Electric unit

what happened

According to Dow Jones Newswires, ABB is investing roughly $495 million to take a controlling stake in the newly separated low-voltage power distribution business of Japan's Mitsubishi Electric. The Swiss engineering group is forming a joint venture with the Japanese company and may take full ownership over the medium term.

The deal was announced alongside ABB's third-quarter results. Orders reached $12.055 billion and revenue was $9.7 billion, up 14% on a comparable basis. Net profit fell to $1.18 billion from $1.21 billion a year earlier, while operational Ebita rose 24% to $2.03 billion. Analysts had expected net profit of $1.42 billion and Ebita of $2 billion. Data-center orders more than tripled.

For 2026, ABB now expects comparable revenue growth in the low-teens percentage range, compared with its earlier low double-digit to low-teens view, and an operational Ebita margin improvement of at least 270 basis points.

why it matters

The slightly higher revenue outlook and strong data-center orders suggest demand for electrical equipment remains firm. The Mitsubishi Electric tie-up strengthens ABB's position in Japan.

market impact

ABB and electrical equipment: strong orders and raised guidance support the company and sector sentiment

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