ABB India Shares Drop 2% as Parent ABB Ltd Sells Robotics Division to SoftBank for $5.4 Billion

Mumbai, 8 October 2025: ABB India Limited (NSE: ABB, BSE: 500002) saw its share price decline sharply today after its parent company, ABB Ltd, announced the sale of its global Robotics division to Japan’s SoftBank Group Corp for an enterprise value of $5.375 billion. The strategic divestment marks a major shift in ABB’s global operations and a reorganisation of its business focus toward process and machine automation.

ABB India Limited, part of the ABB Group, is a global leader in electrification and industrial automation, with over 140 years of history and approximately 110,000 employees worldwide. Headquartered in India, the company focuses on power and automation technologies across sectors such as utilities, infrastructure, and transport. Its shares are actively traded on the NSE and BSE under the ticker ABB.

ABB’s Robotics Division Sale Brings $5.4 Billion Cash Inflow, Impacting 7,000 Employees

The divestment involves approximately 7,000 employees worldwide and is expected to generate a pre-tax book gain of $2.4 billion for ABB Ltd. After accounting for separation costs of $200 million and estimated tax outflows of $400–500 million, net cash proceeds are projected at $5.3 billion. The Robotics division contributed $2.3 billion in revenue in 2024, representing 7% of ABB Group’s total revenue, with an operational EBITA margin of 12.1%.

The sale decision replaces ABB’s earlier plan to spin off the Robotics division as a standalone public entity. Post-divestment, ABB will restructure into three business areas, with the Machine Automation unit integrating into the Process Automation segment, signalling a tighter focus on core operations.

Management Highlights Strategic Rationale for Robotics Divestment

ABB Chairman Peter Voser stated that the board “carefully evaluated” SoftBank’s offer versus the previous spin-off strategy. He noted that the divestment underscores the division’s long-term strength while creating immediate capital for ABB. CEO Morten Wierod added that SoftBank offers a promising environment for Robotics employees and that the collaboration could accelerate advancements in AI-driven industrial robotics.

SoftBank Chairman and CEO Masayoshi Son termed the acquisition a step toward achieving “Physical AI,” emphasising the combination of ABB’s industrial know-how with SoftBank’s AI and computing capabilities to drive technological evolution.

ABB India Share Price Falls 2% Amid Divestment Announcement, Reflecting Market Sensitivity

Following the announcement, ABB India Ltd shares opened at ₹5,236.50, reached an intraday high of ₹5,236.50, and a ow of ₹5,101.00, before closing at ₹5,110.50, down ₹109.00 (2.09%) at 3:30 pm IST. The company’s market capitalisation stands at ₹1.08 lakh crore, with a P/E ratio of 60.33 and a dividend yield of 0.85%. The 52-week high and low are ₹8,940.60 and ₹4,684.45, respectively, reflecting the significant volatility amid global strategic realignments.

The sale of ABB’s Robotics division to SoftBank highlights a growing focus on strategic realignment, operational efficiency, and capital optimisation in global industrial conglomerates. The transaction underscores how large-scale divestments and restructuring can reshape business segments while generating substantial cash flows for future operational and investment priorities.

REF: https://nsearchives.nseindia.com/corporate/ABB_08102025131755_PressRelease.pdf

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