ABB Secures $5B for Acquisitions After Robotics Sale to SoftBank
ABB CEO Morten Wierod has announced that the sale of the company's robotics unit to SoftBank Group Corp. for over $5 billion will provide ABB with more financial power to pursue acquisitions. The sale, which was 'well above' market expectations, has been positively received by analysts.
ABB aims to generate 1%-2% annual revenue growth through strategic acquisitions, focusing on electrification and automation. The company has considered large acquisition targets in the past, including Legrand SA, which has a market value of almost €38 billion ($44 billion). ABB has reached out to the French government about a potential transaction with Legrand. Analysts suggest using the proceeds from the robotics sale for a mix of dividends, mergers and acquisitions (M&A), and share buybacks.
ABB's sale of its robotics unit to SoftBank Group Corp. has provided the company with significant funds to pursue acquisitions. The company's focus remains on electrification and automation, and it has previously considered large acquisition targets such as Legrand SA. ABB's next move in the acquisition arena will be watched closely by investors and industry observers.
