ABB has agreed to divest its Robotics division to SoftBank Group in a deal valued at USD 5.375 billion, transferring one of the world’s leading industrial robotics businesses into Japan’s growing “physical AI” portfolio. The sale, announced on 8 October, follows ABB’s earlier plan to spin off the division as a separate public company — a move now shelved in favour of a full cash transaction.
SoftBank will acquire the entire Robotics and Discrete Automation segment, which generated around USD 2.3 billion in revenue in 2024 and employs roughly 7,000 people worldwide. The sale is subject to regulatory approvals across major jurisdictions, with completion targeted for mid-to-late 2026. ABB expects net cash proceeds of about USD 5.3 billion and a pre-tax book gain of USD 2.4 billion once the transaction closes.
ABB Chairman Peter Voser described the sale as “a logical next step in focusing ABB on electrification and automation, where our synergies and long-term growth potential are strongest.” Chief Executive Morten Wierod said the divestment would “strengthen ABB’s capital position” and allow greater investment in its core digital automation and energy technologies.
For SoftBank, the acquisition aligns with founder Masayoshi Son’s “Physical AI” vision — integrating robotics, artificial intelligence, and advanced computing to augment physical industries. The group already owns stakes in robotics ventures including Berkshire Grey and AutoStore. “ABB Robotics’ technology and scale will accelerate our ambition to make intelligent machines a core pillar of global industry,” Son said in a statement.
Industry analysts view the move as one of the most significant structural changes in global robotics since China’s Midea acquired Kuka AG in 2016. The sale effectively removes Europe’s second-largest industrial robotics manufacturer from European ownership, a shift that may prompt political scrutiny given ongoing debates around technological sovereignty and automation supply chains.
ABB’s robotics arm — long headquartered in Västerås, Sweden — supplies articulated and collaborative robots across automotive, electronics, and logistics markets. It has been a cornerstone of ABB’s automation identity for decades, with operations intertwined with the company’s motion and electrification units. Carving out the business is expected to involve complex separation costs of roughly USD 200 million, half of which ABB says are already accounted for in its 2025 guidance.
Market observers note that ABB’s exit may tighten competition among remaining industrial players, particularly Japan’s Fanuc and Yaskawa and Germany’s Kuka. While SoftBank gains immediate scale, ABB sheds a capital-intensive unit in favour of higher-margin segments tied to grid electrification and smart automation — a realignment that mirrors broader industrial trends toward energy infrastructure over mechanical production assets.
The transaction will be closely watched by regulators in Europe, the United States, and China, each likely to review data security and national capability implications. ABB will reclassify the robotics business as “discontinued operations” from the fourth quarter of 2025.
If approved on schedule, the sale will create the first global robotics group majority-owned by a technology investment conglomerate — and close one of the longest chapters in ABB’s industrial automation history.
