TLDRs;
- ABB Ltd. stock rose 0.70% to SEK 693.80 after announcing a $5.4 billion sale of its robotics division to SoftBank.
- The deal shifts ABB’s focus toward automation and electrification while SoftBank deepens its investments in artificial intelligence.
- SoftBank’s founder Masayoshi Son says the acquisition marks a new era of “Physical AI,” merging robotics and superintelligence.
- ABB expects $5.3 billion in cash proceeds from the sale, with investors responding positively to the move.
Swiss industrial powerhouse ABB Ltd. ($ABB.ST) saw its stock edge 0.70% higher to SEK 693.80 on Wednesday, following confirmation that it will sell its robotics division to Japan’s SoftBank Group for $5.4 billion.
The move marks a major shift for ABB, signaling its intent to focus on its core automation and electrification businesses while handing off one of its most dynamic units to SoftBank, a company doubling down on artificial intelligence.
The deal is expected to close between mid and late 2026, pending regulatory approvals worldwide. ABB said it anticipates cash proceeds of around $5.3 billion, with roughly $200 million in separation costs. Investors reacted favorably to the announcement, pushing the company’s shares close to their 52-week high of SEK 712.00, as optimism grew around ABB’s sharper strategic focus and improved liquidity position.
SoftBank’s AI Expansion Strategy
SoftBank Group, led by founder and CEO Masayoshi Son, described the acquisition as part of its ongoing mission to merge artificial intelligence with physical systems, a concept Son refers to as “Physical AI.”
“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,” Son said in a statement.
The deal reinforces SoftBank’s ambition to sit at the center of the AI revolution. The Japanese conglomerate already owns Arm Holdings, the semiconductor designer that went public again in 2023, and holds significant stakes in OpenAI and several robotics firms, including AutoStore Holdings and Agile Robots.
While SoftBank’s early experiment with the humanoid robot Pepper flopped a decade ago, Son’s renewed push suggests a more grounded, industrial approach to robotics, one that aligns with ABB’s long-standing expertise in automation and manufacturing systems.
ABB Refocuses on Core Strengths
For ABB, the sale represents a calculated pivot rather than a retreat. Under CEO Morten Wierod, who took the helm in August 2024, ABB had initially considered spinning off its robotics arm as a standalone public company. However, the SoftBank offer provided a faster and more lucrative route to unlock shareholder value.
ABB stated that the proceeds from the sale will be deployed “in line with its well-established capital allocation principles,” hinting at possible reinvestments in energy infrastructure, electrification systems, or share buybacks.
The robotics unit ,which competes with Japan’s Fanuc and Yaskawa, as well as Germany’s Kuka, has been one of ABB’s most innovative divisions. Its sale underscores the company’s growing emphasis on digital automation and industrial efficiency, areas where it maintains a strong global lead.
Investor Sentiment Turns Upbeat
On the Stockholm exchange, ABB’s shares traded between SEK 681.20 and SEK 712.00 throughout the session, closing at SEK 693.80.
The uptick reflects renewed investor confidence as the market digests both the strategic clarity and the immediate financial gain from the deal.
With a market capitalization of SEK 1.27 trillion, a P/E ratio of 32.38, and a forward dividend yield of 1.48%, ABB remains one of Europe’s most stable industrial players. Analysts expect its 12-month price target to rise toward SEK 740.00 as investors reward the firm’s decisive restructuring and SoftBank’s high-profile endorsement of its robotics technology.
