ABB is said to eye acquisitions after $5.4B robotics sale to SoftBank

[ABB subsidary in Krakow city.]
yuelan/iStock Editorial via Getty Images

ABB (OTCPK:ABBNY [https://seekingalpha.com/symbol/ABBNY]) is signaling that it has the balance sheet strength and ambition to pursue acquisitions following the surprise decision to divest its robotics division to Japan’s SoftBank Group for nearly $5.4 billion, well above what analysts had anticipated, Bloomberg News reported Wednesday.

Chief Executive Morten Wierod said in an interview that the transaction gives the Swiss engineering group greater financial flexibility to shift from a focus on profitability improvements toward growth initiatives, particularly through mergers and acquisitions.

ABB is targeting 1% to 2% of annual sales expansion via deals, especially in the electrification and automation segments, he said to Bloomberg News.

The company has previously weighed larger-scale transactions, including a potential tie-up with Legrand SA, the French maker of electrical and digital infrastructure products.

ABB informally approached Legrand in late 2024 and also contacted the French government about the possibility, Bloomberg News reported, citing people familiar with the matter. While no talks are currently underway, Legrand -- valued at almost €38 billion ($44 billion) -- would represent ABB’s most ambitious acquisition to date. Any such deal would require political approval in France, where uncertainty has complicated large-scale transactions.

Following the announcement, Legrand’s shares rose as much as 2.9% in Paris trading, reaching a record high and ranking among the top performers on the CAC 40. ABB, meanwhile, has seen its own market value climb 20% this year to roughly $136 billion, supported by strong demand for automation solutions and electrical grid upgrades driven by artificial intelligence data center growth.

Analysts largely welcomed the SoftBank deal. Vontobel’s Mark Diethelm wrote that the sale price exceeded expectations and signaled that acquisitions would take on greater importance in ABB’s capital strategy, even though much of the proceeds may ultimately be returned to shareholders via buybacks. Zuercher Kantonalbank’s Florian Sager called the transaction a major positive surprise, arguing it allows ABB to concentrate resources on higher-margin, faster-growing markets while funding a mix of dividends, acquisitions, and repurchases, Bloomberg News reported.

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* Legrand SA 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4807524-legrand-sa-2025-q2-results-earnings-call-presentation]
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* Historical earnings data for ABB Ltd [https://seekingalpha.com/symbol/ABB:CA/earnings]