Update on Disclosed Matter: Mitsubishi Electric and Mitsubishi Heavy Industries Execute Contract for Absorption-type Company Split to Integrate Power-generator Systems Businesses

TOKYO, December 11, 2023--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO: 6503) and Mitsubishi Heavy Industries, Ltd. (TOKYO: 7011) announced today that they have each signed a contract for an absorption-type company split with MTG Co., LTD, which has been established as a preparatory company to integrate the two firms’ power-generator systems businesses under a planned joint venture. As previously announced, the two firms agreed—in principle by a basic agreement (hereinafter MOU) on December 26, 2022 and in detail by a definitive agreement (hereinafter DA) on May 29, 2023—on a plan to transfer their respective power-generator systems businesses to the planned joint-venture company in which Mitsubishi Electric and Mitsubishi Heavy Industries will become the shareholders on April 1, 2024.

Also today, Mitsubishi Electric and Mitsubishi Heavy Industries entered into a memorandum of understanding regarding amendment of DA (hereinafter Amendment Agreement).

Item numbers below are consistent with the previous announcement on May 29, 2023, and newly announced information is underlined.

2. Details of Integration

(1) Schedule

Execution of basic agreement	December 26, 2022
Decision on Absorption-type Company Split	May 29, 2023
Execution of definitive agreements
Execution of company-split agreement Execution of Amendment Agreement	December 11,2023
Effective date of company splits	April 1, 2024 (tentative)

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Contacts

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Mitsubishi Electric Corporation
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Mitsubishi Heavy Industries, Ltd.
Corporate Communication Department
mediacontact_global@mhi.com