ABB To Divest Robotics Division To SoftBank Group For $5.4 Billion Instead Of Separate Listing

Swiss engineering major ABB announced on Wednesday it will divest its robotics division to Japan's SoftBank Group Corp. for an enterprise value of nearly $5.4 billion and not pursue its earlier intention to spin-off the business as a separately listed company.

The transaction is subject to regulatory approvals and is expected to close in mid-to-late 2026, the company said in a statement.

The divestment will create immediate value to ABB shareholders, Chairman Peter Voser said. "SoftBank’s offer has been carefully evaluated by the Board and Executive Committee and compared with our original intention for a spin-off," Voser said.

The company will deploy divestment proceeds in line with its capital allocation principles.

ABB had in April planned to spin off and list its robotics unit in 2026. 

"ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank’s state-of-the-art capabilities in AI, robotics and next-generation computing. This will allow the business to strengthen and expand its position as a technology leader in its field," said CEO Morten Wierod.

Upon closing, the divestment will result in a non-operational pre-tax book gain of approximately $2.4 billion with expected cash proceeds, net of transaction costs, of approximately $5.3 billion, ABB said.

According to ABB, there are limited business and technology synergies between the robotics business and the rest of the group, with different demand and market characteristics.

The segment had a topline of $2.3 billion in financial year 2024 and represented about 7% of ABB Group revenues. It also had an operating margin of 12.1%.

ABB India Ltd., the local unit, had earlier said it will assess what the parent firm does. The robotics divisions contributed to 3.6% of overall revenue in calendar year 2024.

Shares trades 1.7% lower at Rs 5,131 apiece on the NSE as of 2:30 p.m., compared to 0.2% decline in the benchmark Nifty 50.