Mitsubishi Electric to Integrate Building Systems Business into Subsidiary via Company Split

Rhea-AI Summary

Mitsubishi Electric Corporation has announced the transfer of its building systems business, including elevator and escalator manufacturing and sales, to its wholly-owned subsidiary, Mitsubishi Electric Building Techno-Service Co., Ltd. This transfer, conducted through an absorption-type company split, aims to enhance growth and profitability in the building systems sector. As part of its medium-term management plan for fiscal 2026, Mitsubishi Electric seeks to consolidate management structures and strengthen global competitiveness in this key business area.

Positive

• Transfer of building systems business may enhance operational efficiency.
• Focus on growth and profitability aligns with fiscal 2026 management goals.

Negative

• None.

TOKYO--(BUSINESS WIRE)-- Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it will transfer its building systems business and assets, including the manufacture and sales of elevators and escalators, to its wholly-owned subsidiary Mitsubishi Electric Building Techno-Service Co., Ltd. (MELTEC). The transfer will be achieved by means of an absorption-type company split (“Company Split”); certain information is accordingly being omitted from this announcement.

1. Purpose of Company Split

In its medium-term management plan for fiscal 2026, Mitsubishi Electric identified the building systems business as one of its key growth areas, and the company is accordingly working to expand the scale of this business and improve its profitability by investing management resources more intensively to drive growth.

In order to further strengthen its global competitiveness and improve efficiency, Mitsubishi Electric has decided to consolidate its management structure by transferring its building systems business, which is mainly responsible for new installations of elevators and escalators, to a wholly-owned subsidiary primarily responsible for the maintenance and renewal of elevators and escalators.

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Customer Inquiries

Building Systems Group

Mitsubishi Electric Corporation

BSG.Webmaster@ny.MitsubishiElectric.co.jp

www.MitsubishiElectric.com/products/building/

Media Inquiries

Takeyoshi Komatsu

Public Relations Division

Mitsubishi Electric Corporation

Tel: +81-3-3218-2346

prd.gnews@nk.MitsubishiElectric.co.jp

www.MitsubishiElectric.com/news/

Source: Mitsubishi Electric Corporation

FAQ

What is Mitsubishi Electric's recent business transfer announcement about?

Mitsubishi Electric announced transferring its building systems business to its subsidiary, Mitsubishi Electric Building Techno-Service Co., Ltd., to enhance growth and operational efficiency.

How does the transfer impact Mitsubishi Electric's profitability?

The transfer aims to improve profitability by consolidating management and focusing resources on key growth areas in the building systems sector.

What is the stock symbol for Mitsubishi Electric?

The stock symbol for Mitsubishi Electric Corporation is 6503.

When is the company split for Mitsubishi Electric scheduled?

The company split is part of Mitsubishi Electric's broader strategy outlined in its medium-term management plan for fiscal 2026.