ISTANBUL

Japanese conglomerate SoftBank said on Wednesday that it agreed to buy the robotics division of the Swiss-based engineering company ABB for $5.4 billion, in a push to strengthen its artificial intelligence (AI) robotics business.

With the agreement, which is pending regulatory approval worldwide, ABB will no longer pursue spinning off its robotics division as a separately traded company, according to a statement by SoftBank.

Stressing that it is actively investing in AI chips, AI robots, AI data centers, and energy, SoftBank said the acquisition is part of this strategy and is expected to "significantly" strengthen its AI robotics business.

"ABB’s robotics business is a globally recognized brand, known for its reliability and high performance, supported by extensive sales channels and customer relationships," it said.

The Japanese firm said it is "well-positioned" to reignite the robotics business’s growth, particularly through investment in cutting-edge technologies such as AI.

"SoftBank’s next frontier is 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," said SoftBank CEO Masayoshi Son.

The sale "will create immediate value to ABB shareholders," according to a statement from ABB. The firm added that it will allocate the transaction's proceeds "in line with its well-established capital allocation principles."

The ABB said it anticipated making about $5.3 billion in cash. About half of the $200 million anticipated separation cost is already included in ABB's 2025 projection.