ABB Divests Robotics Business to SoftBank for $5.38 Billion

Swiss engineering group ABB has reached an agreement to sell its robotics business to SoftBank Group in a deal valued at $5.38 billion. This decision marks a significant shift for ABB, which had initially planned to spin off and separately list its industrial automation division. This division competes with major players such as Japan’s Fanuc, Yaskawa, and Germany’s Kuka in the production of factory robots.

The transaction is projected to complete in mid-to-late 2026. ABB anticipates that this divestment will generate cash proceeds of approximately $5.3 billion. The company has stated that it intends to allocate these funds towards long-term capital strategies, which include investing in organic growth, pursuing acquisitions, and returning capital to shareholders through dividends and share buybacks.

ABB’s robotics business, which employs around 7,000 people, reported sales of $2.3 billion last year, making up about 7 percent of ABB’s total revenues. However, the company has indicated that there has been limited synergy between its robotics sector and its core operations, which primarily focus on electrification and automation.

This strategic decision signifies ABB’s intent to streamline its operations and concentrate on areas that align more closely with its long-term vision. By divesting its robotics business, ABB can redirect its resources to strengthen its core competencies and enhance shareholder value.

As the robotics market continues to evolve, the acquisition by SoftBank is expected to bolster its position in this competitive field. The deal not only highlights the growing interest in automation technology but also reflects the shifting landscape of industrial robotics, where companies are increasingly looking to consolidate their operations for greater efficiency and market reach.

In conclusion, ABB’s sale of its robotics division to SoftBank is a decisive move that reshapes its business focus and provides significant capital for future investments. The implications of this transaction will be closely watched as both companies navigate the complexities of the robotics industry in the coming years.