ABB to Pay $495 Million for Controlling Stake in Mitsubishi Electric Unit
By Adria Calatayud
ABB said it is investing roughly $495 million to buy a controlling stake in the newly carved out low-voltage-power distribution business of Japan's Mitsubishi Electric.
The Swiss engineering group said Tuesday that it is forming a joint venture with Mitsubishi Electric to strengthen its position in Japan, with an option to take full ownership over the medium term.
The company disclosed the deal as it reported third-quarter results that showed increases in orders and revenue but a decline in net profit, and nudged up its annual sales guidance.
Quarterly net profit fell to $1.18 billion from $1.21 billion in the year-earlier period, ABB said. Operational earnings before interest, taxes and amortization--one of the company's preferred earnings metrics--climbed 24% to $2.03 billion.
Analysts had forecast ABB's net profit at $1.42 billion and operational Ebita at $2 billion, according to company-compiled consensus estimates.
Revenue stood at $9.7 billion, up 14% on a comparable basis.
ABB now anticipates full-year comparable revenue growth in the low-teens percentage range, against previous expectations of an increase ranging from a low double-digit to a low-teens figure. It expects this year's operational Ebita margin to improve by at least 270 basis points.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
October 20, 2026 01:36 ET (05:36 GMT)
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