ABB’s Robot Spinoff Becomes a $38 Billion Sale to SoftBank
ABB Ltd.(ABBNY) had been widely expected to spin off its robotics division — a move long anticipated by investors as the final step in ABB’s multi-year simplification effort. Instead, the Swiss industrial giant has chosen to sell the business to SoftBank Group for roughly $38 billion.
The sale highlights a growing theme we’ve seen in recent years: when markets aren’t receptive to IPOs or spinoffs, companies with in-demand technology assets often find it easier, faster and more lucrative — to sell outright. For ABB, the deal brings immediate cash and balance-sheet flexibility, but it ends the possibility of giving shareholders direct ownership in one of its highest-growth units.
It’s a pragmatic exit, but one that reinforces how spin-off ambitions can shift quickly when valuations and financing conditions change.
Coty Weighs Sale or Spinoff of CoverGirl
Coty Inc.(COTY) is reportedly considering either selling or spinning off its flagship CoverGirl cosmetics brand. The dual-track process reflects management’s effort to simplify Coty’s sprawling beauty portfolio and free up capital to reduce debt.
CoverGirl, one of America’s most recognizable drugstore brands, has struggled for relevance amid competition from digital-first and luxury players. A sale could provide an immediate boost to Coty’s balance sheet, while a spinoff might unlock brand value over time — assuming CoverGirl can regain its former market share.
Coty has experience here: it previously reduced its stake in Wella through a partial divestiture, and the same logic may apply again. Whether this ends in a sale or a spin, investors will be watching how much value Coty can actually extract from one of its oldest names.
Goldman Sachs Looks to Find Investors For Versant Spinoff Loan
Goldman Sachs is reportedly seeking investors for a $2.1 billion loan tied to the Comcast’s(CMCSA) Versant spinoff, a financing package ahead of the company’s upcoming spinoff. The loan would be part of a larger debt package that would include a bond offering. This suggests Versant will pay a multi-billion dollar dividend to Comcast at the time of the spinoff as we have seen with several recent spinoffs, like DuPont’s spinoff of Qnity.
Disclosure: The author holds no position in any stock mentioned.