What's Happening?
ABB Group has announced the sale of its ABB Robotics & Discrete Automation division to SoftBank Group Corp. for $5.375 billion. This decision follows a strategic review and comes after a significant decline in orders and revenues from 2023 to early 2025. ABB Robotics, which has its U.S. headquarters in Auburn Hills, Michigan, is a key player in industrial automation, offering products like robot arms and autonomous mobile robots. The division, which accounted for about 7% of ABB's revenues in 2024, employs approximately 7,000 people globally. The sale is expected to create immediate value for ABB shareholders, with the company planning to use the proceeds in line with its capital allocation principles.
Why It's Important?
The acquisition by SoftBank marks a significant expansion of its robotics portfolio, aligning with its vision to integrate artificial intelligence and robotics. This move could enhance SoftBank's capabilities in the robotics sector, potentially leading to innovations in automation and AI. For ABB, the divestment allows a focus on its core areas of electrification and automation, potentially leading to a more streamlined and efficient operation. The transaction is expected to result in a pre-tax book gain of approximately $2.4 billion for ABB, with net cash proceeds of about $5.3 billion. This financial boost could support further investments in ABB's remaining business areas.
What's Next?
The transaction is subject to regulatory approvals and is expected to close by mid-to-late 2026. ABB plans to restructure its operations, moving its Machine Automation division into its Process Automation business area. This restructuring aims to optimize ABB's focus on its core competencies. Additionally, Sami Atiya, president of ABB's Robotics & Discrete Automation business area, will leave the company by the end of 2026, transitioning to a strategic advisor role during the carve-out process. These changes indicate a period of transition for ABB, with potential impacts on its workforce and operational focus.
