Mitsubishi Electric Signs Share-transfer Agreement to Wholly Acquire Swedish Elevator Company Motum

Rhea-AI Summary

Mitsubishi Electric Corporation has announced its agreement to wholly acquire Motum AB, a Sweden-based elevator and automatic door company, effective March 23. This strategic acquisition aims to enhance Mitsubishi Electric's service and modernization capabilities in elevators and escalators across Sweden and Europe. Motum, the largest independent elevator firm in the Nordic region, services over 20,000 units and has a strong position in modernization. As elevators and escalators are core to Mitsubishi Electric's growth strategy, this acquisition supports business expansion in response to rising maintenance demands.

Positive

• Acquisition of Motum strengthens Mitsubishi Electric's elevator and escalator business in Europe.
• Motum services over 20,000 units, enhancing Mitsubishi Electric's maintenance capabilities.
• Positioning to leverage Motum's expertise for expansion throughout Europe.

Negative

• None.

Aiming to further strengthen company’s elevator and escalator business in Europe

TOKYO--(BUSINESS WIRE)-- Mitsubishi Electric Corporation (TOKYO:6503) announced today that it formally agreed on March 23 to wholly acquire Sweden-based Motum AB, which operates an elevator and automatic door business mainly in Sweden. Through the acquisition, Mitsubishi Electric aims to strengthen its capabilities to service and modernize elevators and escalators in Sweden and other countries not limited to Europe.

Motum, in addition to selling and installing new elevators, also has contracts for servicing more than 20,000 units under a multi-brand maintenance business. Established by merging three Swedish elevator companies in 2013, it is now the largest independent elevator company in Nordic region. The company also operates a multi-brand modernization business, having utilized its superior technology and know-how to build a leading position in the market. Going forward, Mitsubishi Electric aims to leverage Motum’s strengths to expand business throughout Europe and other regions.

Elevators and escalators are one of the core businesses in Mitsubishi Electric’s medium-term growth plan to 2025. The company is working to grow business overseas, including in Europe, a mature market in which demands for maintenance and renewals are expected to increase due to aging equipment and high local awareness of environmental needs. Mitsubishi Electric, in addition to meeting these needs by applying its advanced know-how, also plans to strengthen its building-solutions business in Europe by increasingly incorporating its own building-related products and services.

For the full text, please visit: www.MitsubishiElectric.com/news/

View source version on businesswire.com: https://www.businesswire.com/news/home/20220406006128/en/

Customer Inquiries

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Building Systems Group

Mitsubishi Electric Corporation

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Media Inquiries

Takeyoshi Komatsu

Public Relations Division

Mitsubishi Electric Corporation

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Source: Mitsubishi Electric Corporation

FAQ

What is the purpose of Mitsubishi Electric's acquisition of Motum AB?

The acquisition aims to enhance Mitsubishi Electric's capabilities in servicing and modernizing elevators and escalators in Sweden and Europe.

When was the acquisition of Motum AB announced?

The acquisition was formally agreed upon on March 23.

How does the acquisition affect Mitsubishi Electric's business strategy?

It aligns with Mitsubishi Electric's medium-term growth plan focused on expanding its elevator and escalator business in Europe.

What market position does Motum AB hold?

Motum is the largest independent elevator company in the Nordic region, servicing over 20,000 units.

What are the expected benefits of integrating Motum AB into Mitsubishi Electric?

The acquisition is expected to enhance service capabilities and meet growing demands for maintenance and modernization in aging equipment.