Japanese multinational conglomerate SoftBank Group (SBG) is set to acquire ABB's robotics division in a carve-out deal worth $5.3 billion.

The Group, which invests primarily in technology companies focused on AI, IoT, smart robotics, internet services, and telecommunications, said it expects the deal to be completed between mid-2026 and the end of 2026.

SoftBank said the acquisition will boost its AI robotics business due to ABB Robotics’ extensive sales channels and customer relationships.

SBG said it will further focus on boosting its robotics capabilities through further investments in cutting edge technologies including AI.

Masayoshi Son, chairman and chief executive officer of SoftBank Group, confirmed that the deal is part of SoftBank's strategy to focus heavily on 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,” he said.

Following the acquisition, the robotics platform, expertise and existing local presence will be integrated with the technological foundations of SBG's current investments in robotics, including SoftBank Robotics, Berkshire Grey, AutoStore, Agile Robots and Skild AI, SBG said.

ABB's robotics division posted operating and financial results of $32.2 billion for the fiscal year ending in December 2023, while the company's total Ebitda was approximately $5.65 billion.

Morten Wierod, chief executive of ABB, emphasised the firm’s vision of a new era of robotics based on AI, with SoftBank's robotics division and offering focused on being at the forefront of this transformation.

“ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank’s state-of-the-art capabilities in AI, robotics and next-generation computing,” he added.

The deal has been approved by SBG's board of directors and remains subject to customary regulatory approvals, including those from the European Union, China and the US, and the satisfaction of pending customary closing conditions.

In June, SoftBank announced plans to develop a £1 trillion industrial complex in Arizona, focused on robotics and artificial intelligence manufacturing.

According to Bloomberg News, the project, codenamed Project Crystal Land, aims to create a US equivalent of China's Shenzhen manufacturing hub.

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