Mitsubishi Electric and Mitsubishi Heavy Industries plan to merge generator business

Kosaku Naruka

Mitsubishi Electric Corporation and Mitsubishi Heavy Industries Ltd. They said on Monday they plan to consolidate their generator businesses to improve market competitiveness.

Mitsubishi Electric is expected to become the majority shareholder of the newly merged company and Mitsubishi Heavy Industries is expected to become a minority shareholder, the companies said.

Mitsubishi Electric and Mitsubishi Heavy Industries aim to enhance market competitiveness by integrating their respective businesses and combining their respective technologies and assets, they said.

Efforts to achieve carbon neutrality are accelerating globally, while electricity demand is expected to rise due to economic growth, mainly in emerging countries, and increased awareness of energy security, they said.

Mitsubishi Electric and Mitsubishi Heavy Industries said they plan to sign a definitive agreement in late May 2023 and complete the combined generator business by April 1, 2024.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

Source link