What's happened
SoftBank has agreed to acquire ABB's robotics division for around $5.4 billion, marking a strategic shift for ABB and a major expansion for SoftBank in AI and robotics. The deal, expected to close in late 2026, aims to boost SoftBank's robotics investments amid ABB's focus on electrification.
What's behind the headline?
The deal signifies a strategic pivot for ABB, which is shifting focus toward electrification and automation, leaving its robotics division to SoftBank. SoftBank's move underscores its ambition to lead in physical AI, combining its AI expertise with ABB's industrial technology. This acquisition will likely accelerate SoftBank's robotics portfolio, especially as the industry faces subdued demand in Asia and ongoing economic uncertainties. The deal also reflects a broader trend of consolidation in robotics, with Japanese and European firms seeking to leverage AI advancements. The timing suggests SoftBank aims to capitalize on the growing AI-driven automation market, while ABB aims to strengthen its core electrification business. The success of this integration will depend on SoftBank's ability to ignite growth in the robotics segment, which has seen declining sales and profitability. Overall, this move will reshape the competitive landscape, with SoftBank positioning itself as a major player in AI-powered robotics, potentially influencing global automation trends.
What the papers say
The coverage from Bloomberg highlights SoftBank's strategic push into robotics, emphasizing the $5.4 billion deal and SoftBank's broader ambitions under Masayoshi Son. Bloomberg notes the deal's expected closure in late 2026 and SoftBank's aim to 'reignite' sales at ABB's robotics unit.
The Japan Times provides context on ABB's decision to sell, noting the unit's struggles with demand and profitability, and how the move aligns with ABB's focus on electrification and automation. It also discusses the strategic shift under new CEO Morten Wierod, who sees AI and robotics as a new era.
TechCrunch emphasizes the deal's regulatory hurdles and SoftBank's investment history in robotics, including startups and its own platform. It underscores SoftBank's vision of uniting AI and robotics to propel human progress.
The South China Morning Post offers insight into SoftBank's broader robotics ambitions, framing the deal as part of a larger expansion after a period of retrenchment, and discusses the implications for European and Japanese robotics firms. It also highlights the market reactions, with ABB and SoftBank shares moving post-announcement.
How we got here
ABB, a Swiss industrial conglomerate, has struggled with declining profitability in its robotics division, which employs 7,000 people and generated $2.3 billion in revenue in 2024. The company initially planned to spin off this unit but changed course after SoftBank's interest. SoftBank, led by Masayoshi Son, has been expanding its robotics investments, including in startups and its own platform, aiming to integrate AI with robotics.
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Common question
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Why Is ABB Selling Its Robotics Division to SoftBank?
ABB's decision to sell its robotics division to SoftBank marks a major shift in the tech and automation industry. This move raises questions about ABB's future focus, SoftBank's expansion plans, and what this means for robotics and AI development. Below, we explore the key details of this deal and what it could mean for the industry moving forward.
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Why is ABB selling its robotics division to SoftBank?
ABB's decision to sell its robotics division to SoftBank marks a major shift in the tech and automation industry. This move raises questions about the future of robotics, ABB's strategic goals, and how SoftBank plans to expand its AI and robotics portfolio. Below, we explore the key reasons behind this sale and what it means for the industry moving forward.
More on these topics
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ABB is a Swiss-Swedish multinational corporation headquartered in Zurich, Switzerland and Stockholm, Sweden. operating mainly in robotics, power, heavy electrical equipment, and automation technology areas.
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SoftBank Group Corp. is a Japanese multinational conglomerate holding company headquartered in Tokyo. SoftBank owns stakes in many technology, energy, and financial companies.
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Masayoshi Son is a Japanese billionaire technology entrepreneur, investor, and philanthropist. He is the founder and chief executive officer of the Japanese holding company SoftBank, CEO of SoftBank Mobile and chairman of UK-based Arm Holdings.