ABB India, the subsidiary of Zurich-based ABB Limited will assess the decision by global parent to divest its robotics division to SoftBank Group, instead of spinning it off as a separately listed entity, an exchange filing said on October 8.
Earlier, the Swiss engineering group had announced that it is divesting the robotics business to SoftBank at an enterprise value of $5.375 billion, which it said will create value for shareholders.
"It reflects the long-term strengths of the division, and the divestment will create immediate value to ABB shareholders," Peter Voser, Chairman of ABB said, adding that the company will continue to focus on its longer term strategy and build on our leading positions in electrification and automation.
ABB's CEO Morten Wierod said Softbank will be an 'excellent new home for the business'.
"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.
For Softbank, the deal marks a major push by founder and CEO Masayoshi Son into robotics, ramping up investment activity.
"Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics —driving a groundbreaking evolution that will propel humanity forward," Masayoshi Son, Chairman & CEO of SoftBank Group said, calling physical AI as the group's 'next frontier'.
SoftBank had forayed into robotics back in 2014 with an investment in humanoid Pepper. The latest deal is a fresh bet by SoftBank in the robotics business and reflects Masayoshi Son’s rising focus on AI-driven bets.
ABB India said the company will analyse the impact of the parent's company's decision. "The Board of Directors of the Company will assess potential implications of the said announcement on Company’s Robotics business (RARO) in India at an appropriate time and evaluate next steps in accordance with the applicable laws," an exchange filing said.
The divestment of the unit - struggling with dropping profitability and sales - is first such decision under the ABB CEO who took charge last year.
Share of ABB and Softbank were higher after the announcement.
ABB's robotics division has manufacturing hubs in China, the US and Sweden, and employs around 7,000 people with 2024 revenue of $2.3 billion, making up about 7 percent of ABB Group's revenue at an operational EBITA margin of 12.1 percent. The expected separation costs involving the divestment is approximately $200 million, and ABB said it had included about half of it in its 2025 guidance.
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