Mitsubishi Electric announced plans to sell its switchgear components business to ABB and transfer a majority stake for a total of ¥82.4 billion. Completion is targeted for around October 2047.
Mitsubishi Electric announced that it will sell its switchgear components business, including components around circuit breakers, to Switzerland-based major electrical-equipment manufacturer ABB. The total transaction value is expected to reach ¥82.4 billion, and the company plans to recognize the gain on the sale in its financial results for the fiscal year ending March 2028.
The businesses covered by the sale include low-voltage circuit breakers and electromagnetic contactors. A 51% stake will be transferred to ABB. After the sale, Mitsubishi Electric will continue to operate some of the assets, and it aims to transfer the shares to ABB’s Japanese subsidiary by October 2027.
Revenue from the business as a whole is estimated at ¥102.2 billion for the fiscal year ending March 2026. As resources are allocated to high-voltage areas, including data centers in the energy sector, the company has indicated a policy of jointly operating some receiving-side facilities with other companies.
Under its medium-term management plan, Mitsubishi Electric has positioned smart energy, including energy-efficient data-center operation services, as a priority area. It plans to concentrate resources on the high-voltage areas of transmission and distribution networks while operating receiving-side facilities in cooperation with other companies.