ABB Establishes Joint Venture With Mitsubishi Electric

Oct 20 (Reuters) - ABB LTD ABBN.S:

• ABB LTD - JOINT VENTURE WITH MITSUBISHI ELECTRIC TO EXPAND POSITION IN ASIA-PACIFIC MARKETS

• ABB LTD - $495 MILLION INVESTMENT WILL FURTHER STRENGTHEN GLOBAL LEADERSHIP IN LOW-VOLTAGE POWER DISTRIBUTION AND PROTECTION

• ABB LTD - TO HOLD CONTROLLING 51 PERCENT STAKE IN A JOINT VENTURE FORMED WITH MITSUBISHI ELECTRICÂEUR ™S CARVED-OUT LOW-VOLTAGE POWER DISTRIBUTION PRODUCT BUSINESS

• ABB LTD - TRANSACTION, WHICH PROVIDES AN OPTION FOR FULL OWNERSHIP BY ABB IN MID-TERM, IS EXPECTED TO CLOSE IN SECOND HALF OF 2027

• ABB LTD - EXPECTS SYNERGIES TO IMPROVE JOINT VENTUREÂEUR ™S EARNINGS, REDUCING IMPLIED EV/EBITDA MULTIPLE TO MID- TO HIGH- SINGLE-DIGIT RANGE

• ABB LTD - EXPECTS JOINT VENTURE TO BE ACCRETIVE TO EARNINGS PER SHARE AFTER YEAR ONE AND TO ACHIEVE AN OPERATIONAL EBITA MARGIN OF AT LEAST 20 PERCENT WITHIN FIVE YEARS

• ABB LTD - TRANSACTION VALUES COMBINED BUSINESSES AT A TOTAL ENTERPRISE VALUE (EV) OF AROUND $890 MILLION

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