SoftBank strikes deal to acquire ABB’s robotics business for US$5.4 billion
News Summary
SoftBank Group Corp. has agreed to acquire the robotics business of Swiss engineering group ABB in a US$5.4 billion deal. This marks a significant push by SoftBank founder and CEO Masayoshi Son into robotics, expanding investment activity after a period of retrenchment. The deal signifies ABB's abandonment of its original decision to spin off and separately list its industrial automation business, which competes with companies like Japan’s Fanuc and Yaskawa, and Germany’s Kuka. This is the first major move under new ABB CEO Morten Wierod, coming after the robotics business struggled with falling profitability and sales in recent years. Both CEOs stated that ABB and SoftBank share the perspective that the world is entering a new era of AI-based robotics. They believe the combined entity, leveraging ABB's leading technology and industry expertise with SoftBank’s capabilities in AI, robotics, and next-generation computing, can best shape this new era.
Background
SoftBank Group is known for its aggressive investments in technology, particularly through its Vision Fund, but has recently undergone a period of investment retrenchment. The company has existing forays into robotics, including investments in the humanoid robot Pepper, and industrial automation firms like Berkshire Grey and AutoStore. ABB is a Swiss-Swedish multinational corporation operating mainly in robotics, power, heavy electrical equipment, and automation technology. Its robotics business is a key player in industrial automation but has faced increasing market competition and profitability challenges in recent years. This divestment represents a significant strategic shift under its new CEO, Morten Wierod.
In-Depth AI Insights
What are the deeper strategic intentions behind SoftBank's acquisition? - While the article mentions Masayoshi Son's return to robotics after a period of investment retrenchment, a deeper reason might be his focus on building an