Swiss industrial giant ABB Ltd. is exploring the possibility of selling its robotics division, which could be valued at more than $3.5 billion, according to people familiar with the matter. The move is seen as an alternative to its main spin-off plan. ABB is about to appoint an advisory team to handle the sale and listing. The people familiar with the matter asked to remain anonymous because the negotiations are still private.
Some people familiar with the matter said the business could be valued at about $3.5 billion, in line with analyst expectations, or even as high as $5 billion. If ABB abandons its preferred spin-off plan and chooses to sell it, the division may attract interest from private equity firms. In response, ABB said in an emailed statement: "If approached by ABB, the executive committee and the board of directors are obliged to fully evaluate all proposals," but reiterated that "spin-offs remain the best option to optimize the value creation of each company for customers."
In April this year, ABB announced plans to spin off the robotics division and promote its listing in the second quarter of 2026. This is one of the major strategic initiatives launched by new CEO Morten Wierod since he took office in August last year. Velode, who was in charge of ABB's flagship electrification business, wants the company to focus on more profitable units, such as the electrification unit that benefits from the rise of artificial intelligence and a surge in data center investment. ABB's robotics unit, headed by Marc Segura, accounts for two-thirds of ABB's robotics and discrete automation unit, has 7,000 employees and manufacturing centers in China and the United States. ABB said the unit has limited synergies with other businesses and will be easier to compare with other peers after independence.
If the spin-off is successful, ABB shareholders will receive shares in the future listed company. ABB plans to list in Sweden or Switzerland, but has not ruled out other listing locations. In 2024, the operating earnings before interest, taxes, amortization and depreciation (EBITA) of the robotics and discrete automation unit was US$329 million, a year-on-year decline of 39%, mainly affected by weak demand in the automotive and consumer electronics industries.
