SoftBank's $5.4 Billion Acquisition of ABB's Robotics Business: Masayoshi Son Bets on "Physical AI" to Ignite Industry Transformation

On October 8, Swiss industrial giant ABB announced that it had reached an agreement with Japan's SoftBank Group to sell its robotics business unit for $5.375 billion. This news instantly sparked excitement in the global tech and industrial sectors, driving SoftBank's stock price to soar by 13% on October 9, hitting an intraday high.

Source: Jiemian

At the same time, stocks of Japanese robot-related companies surged: Yaskawa Electric's stock price rose by 10%, Harmonic Drive Systems saw a significant increase of 17%, and Fanuc Corporation's stock price rose by 4.6%. This wave of market enthusiasm clearly reflects investors' strong approval of SoftBank's strategic acquisition.

01 Transaction Core: Abandon Listing, Direct Sale

The outline of this transaction is gradually becoming clear. ABB's original plan was to spin off its robotics business and promote its independent listing. On April 17th of this year, ABB announced its decision to implement a 100% spin-off of its robotics business unit, with the goal of launching it as an independently listed company in the second quarter of 2026.

However, the emergence of SoftBank changed everything. On the morning of October 9, ABB China announced that the ABB Group has signed an agreement to sell its robotics business unit to SoftBank Group, with a company valuation of $5.375 billion, and will no longer pursue the previously planned independent listing.

According to the Economic Observer, the transaction is expected to be completed in the latter half of 2026, pending regulatory approval and the satisfaction of customary closing conditions. After the agreement is signed, ABB will adjust its financial reporting structure, with the robotics business classified as "discontinued operations" starting from the fourth quarter of 2025.

ABB CEO Morten Wierod explained the reasons for selling the robotics business: "The robotics market has higher volatility. Over the years, we have seen both growth and fluctuations in profit margins in this area."

According to a report by Jiemian News, ABB believes that the synergies between this business and other business units of the group are limited, and it faces different market demands and characteristics. It is reported that ABB's robotics business has approximately 7,000 employees and generated sales revenue of $2.3 billion last year, accounting for about 7% of ABB Group's total revenue, with an operating profit margin before interest, taxes, and amortization of 12.1%. The Zurich State Bank of Switzerland stated that it originally expected the valuation of ABB's robotics business in a spin-off situation to be slightly below $4 billion. However, SoftBank's offer of $5.375 billion significantly exceeds this valuation, creating immediate value for ABB shareholders.

02 Business Collaboration: Complement SoftBank AIEcological Key Links

SoftBank Group Chairman and CEO Masayoshi Son expressed the strategic intent of this acquisition clearly: "The next strategic frontier for SoftBank is Physical AI. The company will collaborate with ABB Robotics to achieve the integration of Artificial Superintelligence (ASI) with robotics technology."

"Physical AI," according to the Nihon Keizai Shimbun, refers to AI that can recognize actions in the real world and take optimal actions. Unlike traditional automation technologies where conditions and rules are set by humans, AI is capable of autonomous judgment.

Geek.com analysis suggests that what Masayoshi Son spent $5.4 billion on wasn't just a bunch of machines, but a "pass" directly leading to the "physical AI" arena. ABB Robotics' "moat" in the field of industrial automation—precise control, large-scale deployment, and other hard technologies—is exactly the "missing piece" in SoftBank's earlier strategic layout.
SoftBank is actively positioning itself in the AI industry, investing in various sectors such as AI chips, AI robots, and AI data centers. Currently, SoftBank owns the UK chip design company Arm and holds shares in OpenAI. In the robotics field, SoftBank's investments include SoftBank Robotics Group, Berkshire Grey, AutoStore Holdings, Agile Robots SE, and Skild AI.

ABB's robotics business has long served industries such as automotive, electronics, and logistics. Its technology includes not only the robots themselves but also programming software, sensor systems, and smart manufacturing solutions. These resources will form a strong synergy with SoftBank's existing robotics ecosystem, building a comprehensive robotics empire covering consumer, logistics, and industrial manufacturing sectors.

03 Industry Landscape: The Global Competition Has Begun

The acquisition by SoftBank is not an isolated action, but rather a reflection of the global tech giants racing to position themselves in the realm of "physical AI."

In this field, NVIDIA is also seeking business opportunities in collaboration with Yaskawa Electric. According to the Nikkei, on October 3rd, NVIDIA reached an agreement with Fujitsu to explore a tripartite collaboration that includes Yaskawa Electric.

SoftBank Group and NVIDIA share a common interest in urgently collecting on-site factory data for AI learning. Unlike existing AI that learns from academic papers and data on the internet, developing physical AI requires special data from factory sites. ABB is at the forefront of using "digital twin" technology and is very proactive in utilizing data among robotics giants. SoftBank Group hopes to achieve a product effect with this digital technology.

Editor: Lily

Source of materials: Sina, Economic Observer, Jiemian, Geek Park, Nikkei, Electronic Engineering Magazine, InnoVenture International Europe Mergers and Acquisitions and Investments.