It is reported that ABB is currently exploring the possibility of selling its robotics division, which is valued at about $3.5 billion, in line with analysts' expectations, and could even be as high as $5 billion in an optimistic scenario. A team of consultants is also being appointed to take charge of the sale and listing. As the negotiations are in private, the insider requested anonymity.
It is worth noting that the move to sell the robotics business is an alternative to ABB's main spin-off plan. Back in April this year, ABB announced a major strategic decision to spin off the robotics division and promote its listing in the second quarter of 2026. This decision was made by the new CEO Morten Velode. Since taking office in August last year, Velode has been committed to strategic adjustments to the company's business. He was previously in charge of ABB's flagship electrification business and is well aware of the development potential of different business segments. In his view, the electrification division, which benefits from the rise of artificial intelligence and a surge in data center investment, has more considerable profit margins. Therefore, he hopes that the company can focus more on such high-profit divisions, which is also an important background for the decision to spin off the robotics business.
ABB Group has a long history. It was formed in 1988 by the merger of ASEA of Sweden and BBC of Switzerland. Its headquarters is located in Zurich, Switzerland. After years of development, its business has spread to more than 100 countries around the world, with 105,000 employees. Since providing a steam boiler to China in 1907, ABB has had an indissoluble bond with China. Now it has a full range of businesses in China, including R&D, manufacturing, sales and engineering services, with 27 local companies and 15,000 employees in nearly 130 cities.
As a global technology leader, ABB's business covers electrical products, robots and motion control, industrial automation and power grids. In the electrical field, it provides products and solutions for all aspects from power generation to power consumption; in industrial automation, its technology helps many companies improve production efficiency and quality; and the power grid business plays a key role in global energy transmission and distribution. The highly anticipated robotics business is an important part of ABB's diversified layout.
ABB's robotics department occupies a unique position in the company's business system. The department is headed by Marc Segura, has 7,000 employees and has manufacturing centers in China and the United States. In the global robot market, ABB is one of the well-deserved leaders. Its robot product types are rich and diverse and are widely used in many industries.
Although the robot business has its own development advantages, the challenges it has faced in recent years cannot be avoided. From the financial data, in 2024, the operating profit before interest, taxes, amortization and depreciation (EBITA) of the Robotics and Discrete Automation Division was US$329 million, a year-on-year decline of 39%. In-depth analysis of the reasons behind it is mainly due to weak demand in the automotive and consumer electronics industries. As important application areas of robots, the shrinking demand in these two industries directly affects the revenue performance of ABB's robot business.
