SoftBank Acquires ABB Robotics Unit in $5.4 Billion Deal

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SoftBank Acquires ABB Robotics Unit in $5.4 Billion Deal

SoftBank Group has announced its agreement to acquire ABB’s robotics division for $5.4 billion. This strategic move, revealed on October 8, aims to enhance SoftBank’s presence in the rapidly evolving robotics sector.

SoftBank’s Commitment to Robotics

Masayoshi Son, founder and CEO of SoftBank, is eager to lead advancements in robotics. The company has prior investments in robotics, including notable names like Berkshire Grey and AutoStore. The acquisition aligns with its focus on artificial intelligence and robotics.

ABB’s Shift in Strategy

Previously, ABB intended to spin off its industrial automation arm. However, the company has now decided to divest this sector. This change marks a significant shift under the leadership of ABB’s CEO, Morten Wierod, who took the helm last year. The robotics division has faced challenges, with declining profitability and sales.

Market Reactions and Financial Implications

ABB shares rose approximately 3% following the announcement.
SoftBank’s stock increased by about 1%, maintaining a strong interest in AI-driven companies.
SoftBank’s shares have seen a remarkable surge, tripling over the past six months.

Future Outlook for ABB Robotics

The transaction is expected to conclude between mid to late 2026. ABB anticipates cash proceeds of nearly $5.3 billion from this divestment. The funds will support its long-term capital strategies, focusing on organic growth, future acquisitions, and shareholder returns.

Robotics Division Overview

ABB’s robotics business employs roughly 7,000 people and reported sales of $2.3 billion last year. This accounts for about 7% of ABB’s overall revenue. However, there has been a decrease in demand for robotics, particularly in Asia, largely due to economic uncertainties.

Market Dynamics

According to the International Federation of Robotics, the number of new installations remained stable at 542,000 units in 2024. Companies are postponing significant capital investments, reflecting a cautious market outlook.

This acquisition not only signifies a bold step for SoftBank but also signals ABB’s commitment to ensure its robotics division can thrive in a new partnership that leverages advanced AI and robotics capabilities.