Elektrotechnik: ABB baut Elektrifizierungs-Geschäft in Asien mit Joint-Venture aus

Zürich - The Swiss electrical engineering conglomerate ABB is expanding its footprint in the power distribution business in Asia through a joint venture partnership with Japanese company Mitsubishi Electric. ABB announced on Tuesday that it will acquire a 51% stake in the newly formed entity for approximately $495 million. The joint venture will focus on supplying low-voltage power distribution solutions to Asian markets, and Mitsubishi Electric will transfer its product business, along with its distribution activities outside Japan, to ABB.

The deal is expected to be finalized in the second half of 2027, with ABB retaining an option to acquire the remaining shares in the medium term. Meanwhile, ABB reported its third-quarter results, with revenue up 40% to $12.1 billion, driven by demand for data center construction. Operating order backlog increased by 28% on a normalized basis in the second quarter and 24% in the first quarter.

ABB's chief executive Morten Wierod highlighted that the company has secured an order record and improved operational performance with strong cash flow and high capital return. The company's core electrical business, which includes switchgear, sockets, and substations, grew 70% in the summer, fueled by billions of dollars in investments in new data center construction for artificial intelligence applications.

ABB's revenue increased by 14% to $9.7 billion, and the operating margin improved to 20.8%. Analysts had previously forecast a $9.7 billion revenue and an operating margin of 20.5%. The company raised its full-year outlook, expecting a similar revenue growth in the low double-digit percentage range and an operating margin increase of at least 270 basis points compared to the previous year.