Today, Mitsubishi Electric Corporation will establish a wholly owned subsidiary and implement an absorption-type company split (simplified split) to transfer the target power distribution and control equipment business, aiming to drive growth and strengthen competitiveness. Subsequently, the company will transfer more than 50% of the new company\u2019s shares to ABB to form a joint venture. The disclosure includes details on business transfer, the implementation timeline, and the prospect of profit recognition in fiscal 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Corporation","jir_importance":"\u2605\u2605\u2605\u2605\u2606","jir_publication_date":"2026-10-20","jir_source_link":"https:\/\/japanir.jp\/wp-content\/uploads\/2026\/10\/6503-20261020-01.pdf","jir_short_summary":"Today, Mitsubishi Electric Corporation will establish a wholly owned subsidiary and implement an absorption-type company split (simplified split) to transfer the target power distribution and control equipment business, aiming to drive growth and strengthen competitiveness. Subsequently, the company will transfer more than 50% of the new company\u2019s shares to ABB to form a joint venture. The disclosure includes details on business transfer, the implementation timeline, and the prospect of profit recognition in fiscal 2028.","jir_summary":"### Overview of the Transaction\nMitsubishi Electric Corporation plans to establish a wholly owned new company and carry out an absorption-type company split (simplified absorption-type split) to transfer its power distribution and control equipment business in order to foster growth and strengthen competitiveness. After the split, the new company will succeed the rights and obligations of the target business, and overseas sales will be transferred to ABB\u2019s local subsidiaries. Concurrently, the company will enter into a share transfer agreement to transfer 51% of the new company\u2019s shares to ABB, thereby establishing a joint venture with ABB. This structure aims to enhance integrated operations domestically and internationally and accelerate global expansion.\n\n### Impact and Future Schedule\nThe new company is scheduled to be established on December 1, 2026; the split agreement is scheduled to be executed on August 1, 2027; the effective date of the split and the share transfer execution date are both scheduled for October 1, 2027 (each subject to conditions being met and approvals). As the transaction will result in ABB becoming a consolidated subsidiary, approximately 90,000 million yen may be recorded in other income\/expenses in fiscal 2028 in relation to the share transfer. The new company will leverage ABB\u2019s global resources together with Mitsubishi Electric Corporation\u2019s technology and customer base to enhance competitiveness and pursue long-term growth.","jir_financial_highlights":"Net Sales: Unknown (Unknown)\nOperating Income: Unknown (Unknown)\nNet Income Attributable to Owners of Parent: Unknown (Unknown)","jir_category":"","jir_hashtags":"#MitsubishiElectric, #PowerDistributionAndControlEquipmentBusiness, #OrganizationalRestructuring, #JointVenture, #ABB","jir_key_figures":"Transfer value: 824 hundred million yen (planned)\nNet sales of the business to be split: 1,022 hundred million yen (Fiscal year ended March 2026)\nTotal assets of the business to be split: 695 hundred million yen, Total liabilities: 219 hundred million yen (as of March 31, 2026)","jir_meta_title":"Mitsubishi Electric Corporation: Decision on Joint Venture, Company Split, and Share Transfer to ABB for Power Distribution Business | October 2026","jir_meta_description":"Mitsubishi Electric Corporation will establish a new company and implement an absorption-type company split for its power distribution and control equipment business, and execute a share transfer agreement with ABB. The disclosure outlines the timetable and expected financial impacts.","jir_og_title":"Mitsubishi Electric Corporation: Decision on Joint Venture, Company Split, and Share Transfer to ABB for Power Distribution Business","jir_og_description":"To drive growth in the power distribution and control equipment business, a new company will be established and an absorption-type split executed, followed by a share transfer to ABB. The timetable and expected impacts are disclosed.","jir_og_image_url":"\/assets\/og\/company-general_ir.jpg","jir_chart_data_collection":"[]","ir_related_company":6855,"ir_release_date":"","ir_type":"","ir_is_new":false,"ir_document_url":"","jir_ir_type":"corporate_restructuring","footnotes":""},"sector":[],"importance":[],"class_list":["post-132749","ir_release","type-ir_release","status-publish","hentry"],"yoast_head":"\n