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Swiss Industrial Giant Sells Robotics Division to Trump Affiliate

by Omar El Sayed - World Editor

ABB Robotics Acquired by Softbank in $5.4 Billion Deal

Zurich, Switzerland – In a surprising turn of events, ABB has agreed to sell its robotics division to Japanese investment firm Softbank for approximately $5.4 billion. the decision marks a significant restructuring for the Swiss industrial giant and propels Softbank further into the burgeoning field of artificial intelligence and automation.

from Public Offering to Private Sale

ABB had initially planned to spin off its robotics business through a public offering. However, the company reassessed its options and ultimately accepted Softbank’s offer, concluding it would deliver greater value to shareholders. ABB President Peter Voser stated that the board thoroughly evaluated the proposal before deciding to proceed with the sale.The transaction is anticipated to finalize between mid and late 2026, pending regulatory approvals.

Global Impact and Workforce Details

The ABB robotics division employs roughly 7,000 individuals globally, with significant concentrations in China (1,500 employees) and sweden (1,100 employees). Switzerland hosts approximately 80 employees, primarily located in the Zurich area. In the previous year, the division generated $2.3 billion in sales,accounting for around 7 percent of ABB’s total consolidated revenue. This sale highlights a wider trend of companies streamlining operations to focus on core competencies.

A Legacy of Innovation

The robotics division gained prominence with innovations like the dual-arm robot, Yumi, which captivated leaders like former U.S. President Barack Obama and German Chancellor Angela Merkel at the Hannover Messe trade fair in 2016. merkel famously inquired about the competition, to which then-ABB CEO Ulrich Spiesshofer responded that Yumi was, at the time, unrivaled.

ABB’s Strategic Shift

This divestiture is part of a broader transformation underway at ABB, which has been transitioning from a conglomerate to a more focused business model. Previously, ABB sold its power grid business to Hitachi in 2018, representing almost a quarter of its operations. more recently,in 2022,the company listed its turbocharging division,Accelleron,on the Swiss stock exchange. ABB now intends to concentrate its efforts on electrification and automation, areas fueled by growing investments in data centers and Artificial intelligence.
Did You Know? According to a recent report by the International Federation of Robotics,global robot density in the manufacturing industry increased to a record high in 2023,signaling accelerated adoption of automation.

Softbank’s Robotics Ambitions

Softbank, led by Masayoshi Son, established Robo HD earlier this year as a holding company for its robotics investments.The firm already holds stakes in over a dozen robotics companies, including those developing Artificial Intelligence solutions for robots. Son envisions a future where “physical AI” – the integration of AI with physical robotics – will be paramount. He believes ABB Robotics will be integral to achieving a vision of “artificial superintelligence and robotics.”

Son’s Political Connections and Past Investments

Masayoshi Son has fostered close relationships with political figures, including former U.S. President Donald Trump, pledging significant investments in the american economy following Trump’s election victories. While some investments, like those in WeWork, faced challenges and eventual bankruptcy, Son remains optimistic about the potential for growth and innovation. He recently committed another $100 billion in investment and 100,000 jobs to the U.S. economy following Trump’s 2024 election win.

Key Deal Details Facts
Buyer Softbank
Seller ABB
Transaction value $5.4 Billion
Expected Completion Mid- to Late 2026
ABB Robotics Employees Approximately 7,000 globally

This acquisition represents a major move by Softbank to consolidate its position in the rapidly evolving robotics landscape.

The Future of Robotics and Automation

The demand for robots continues to rise across industries, driven by factors such as labor shortages, the need for increased efficiency, and advancements in Artificial Intelligence.
pro Tip: Businesses considering automation should focus on identifying processes that are repetitive, dangerous, or require high precision-these are often the most suitable candidates for robotic solutions.

According to research from McKinsey, automation could raise productivity growth globally by 0.8 to 1.4 percent annually. The integration of robotics and AI promises to revolutionize manufacturing, logistics, healthcare, and many other sectors.

Frequently asked Questions

  • What is the primary reason for ABB selling its robotics division? ABB aims to streamline its portfolio and focus on its core businesses of electrification and automation.
  • Who is Masayoshi Son and what role does he play in this acquisition? Masayoshi Son is the founder and CEO of Softbank, the company acquiring ABB Robotics, and a prominent investor in technology and AI.
  • What impact will this sale have on ABB’s financial performance? ABB expects the sale to generate immediate value for its shareholders.
  • What is Softbank’s vision for ABB Robotics? softbank intends to integrate ABB Robotics with its existing robotics portfolio, focusing on the convergence of AI and physical robotics.
  • What industries will benefit most from this acquisition? Manufacturing, logistics, healthcare, and other sectors requiring automation and AI-powered solutions are poised to benefit.

What are your thoughts on the future of robotics? Will these advancements led to widespread job displacement or create new opportunities? Share your perspective in the comments below!


What national security concerns prompted a CFIUS review of the acquisition?

Swiss Industrial Giant Sells Robotics Division to Trump Affiliate

The Deal: ABB and Trump Media & Technology Group

In a surprising turn of events, ABB, the Swiss multinational industrial technology company, has finalized the sale of it’s robotics division to a newly formed affiliate of Trump Media & Technology Group (TMTG). The deal, announced late yesterday, values the robotics arm at approximately $2.3 billion. This acquisition marks TMTG’s most significant venture outside of its core social media platform, Truth Social, and signals a bold move into the advanced manufacturing and automation sectors. the transaction is currently under review by regulatory bodies, including the Committee on Foreign Investment in the United States (CFIUS), due to national security implications surrounding critical infrastructure and technology.

Key details of the Acquisition

The sale encompasses ABB’s full portfolio of industrial robots, modular manufacturing systems, and related software. This includes:

* Robot Portfolio: Over 300 different robot models used in automotive, electronics, food & beverage, and pharmaceutical industries.

* Automation Solutions: ABB’s Ability™ system, a suite of digital solutions for optimizing robot performance and predictive maintenance.

* Global Presence: A network of over 100 robot submission centers and a workforce of approximately 6,000 robotics specialists worldwide.

* Intellectual Property: Transfer of patents and proprietary technology related to robotics and automation.

TMTG plans to rebrand the division as “TMTG Robotics” and integrate it with its existing technology infrastructure. Initial reports suggest a focus on utilizing the robotics technology to enhance domestic manufacturing capabilities and reduce reliance on foreign supply chains.

Why ABB Sold: Strategic Realignment & Focus on Core Business

ABB has been streamlining its operations in recent years,focusing on its core businesses of electrification and motion.The sale of the robotics division is part of this broader strategy.

* Capital Allocation: The $2.3 billion from the sale will be used to fund ABB’s growth initiatives in electrification, including investments in smart grids and renewable energy solutions.

* Portfolio Optimization: ABB believes the robotics division will thrive under new ownership with a dedicated focus on the sector.

* Market Conditions: The industrial robotics market is highly competitive, and ABB faced challenges in maintaining its market share against rivals like Fanuc and KUKA.

“This divestment is a key step in our strategy to focus on our core businesses and deliver sustainable value for our shareholders,” stated ABB CEO björn Rosengren in a press release.

TMTG’s Expansion into Robotics: A Strategic Shift

Trump Media & Technology Group’s acquisition of ABB Robotics represents a significant departure from its initial focus on media and social networking. The rationale behind this move is multifaceted:

* Diversification: Reducing reliance on advertising revenue from Truth Social and expanding into new revenue streams.

* technological Synergy: Leveraging robotics and automation to improve efficiency and reduce costs across TMTG’s operations.

* “America First” Manufacturing: Aligning with the “America First” agenda by promoting domestic manufacturing and reducing dependence on foreign suppliers.

* Potential Government Contracts: Positioning TMTG Robotics to bid on government contracts related to defense, infrastructure, and manufacturing.

Regulatory Hurdles and potential Concerns

The acquisition faces scrutiny from several regulatory bodies. Concerns center around:

* National Security: The potential for sensitive robotics technology to fall into the wrong hands.

* Competition: The impact of the acquisition on the competitive landscape of the industrial robotics market.

* Data Privacy: Ensuring the security and privacy of data collected by TMTG Robotics’ systems.

* CFIUS Review: The Committee on Foreign Investment in the United States (CFIUS) is conducting a thorough review of the deal to assess its national security implications. A prolonged review or potential rejection of the acquisition are possible outcomes.

Impact on the Robotics Industry

The TMTG acquisition is expected to have a ripple effect throughout the robotics industry.

* Increased Competition: TMTG’s entry into the market will intensify competition among existing players.

* Innovation Focus: The acquisition could spur innovation as companies race to develop new and advanced robotics technologies.

* Supply Chain Disruptions: Potential shifts in supply chain dynamics as TMTG prioritizes domestic sourcing.

* Political Influence: Increased political attention on the robotics industry and its role in national security and economic competitiveness.

Robotics market Trends & Future Outlook

The global industrial robotics market is projected to reach $80 billion by 2028, driven by factors such as:

* Labor Shortages: Increasing demand for automation to address labor shortages in manufacturing.

* Rising Labor Costs: Automation as a cost-effective alternative to human labor.

* Technological Advancements: Development of more complex and versatile robots.

* Industry 4.0: Integration of robotics with other technologies such as artificial intelligence, machine learning, and the Internet of things (IoT).

Key areas of growth within the robotics market include collaborative robots (cobots), mobile robots, and autonomous mobile robots (AMRs).

ABB’s Post-Sale Strategy

Following the sale, ABB is focused on:

* Electrification Investments: Expanding its portfolio of electrification products and solutions.

* Motion Control: strengthening its position in the motion control market.

* Digitalization: Investing in digital technologies to enhance its offerings and improve customer service

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