US Markets
Hyundai Motor to Buy SoftBank's Stake in Boston Dynamics, Taking Full Ownership
Hyundai Motor Group (KRX:005380) is set to acquire SoftBank Group's (TYO:9984) remaining stake in robotics developer Boston Dynamics, giving the South Korean automaker full ownership of the US robotics company.The transaction was triggered after SoftBank exercised its put option on its shareholding, according to a Thursday press release.Financial terms of the deal were not disclosed, but according to Bloomberg, the purchase of SoftBank's 9.9% stake was valued at roughly $325 million.According to Korean media reports, SoftBank's stake in Boston Dynamics is estimated at 9.65%.Hyundai said shareholders are reviewing contractual rights and obligations tied to the existing agreements through their internal governance and approval processes.The deal comes as Hyundai, the parent company of its namesake brand Hyundai Motor and Kia Corp (KRX:000270), is building an end-to-end AI robotics value chain combining Boston Dynamics' expertise in AI Robotics with the group's manufacturing capabilities."Through this integrated approach, the Group aims to accelerate the development, validation and commercialization of Physical AI technologies and robotics solutions," Hyundai said.Boston Dynamics, headquartered in Massachusetts, develops machines for industrial automation, manufacturing, inspection, and research.The company unveiled its Atlas robot in 2013. A product version of the robot was recently launched."Atlas reduces human physical burden by performing higher-risk tasks; lays the groundwork for robot commercialization and collaborative human-robot environment," Hyundai said in January.The transaction also comes amid a backdrop of labor tension at Hyundai. A union leader told Reuters that Hyundai and Kia, both developing humanoid robots, appear to be planning to replace human workers with new technologies.In January, Hyundai announced plans to deploy humanoid robots at its US factory in Georgia beginning in 2028.Meanwhile, analysts including Changho Kim at Korea Investment & Securities said the acquisition "would ease Hyundai's concerns over the dilution of its ownership in Boston Dynamics after a potential initial public offering," Bloomberg reported, citing an analyst note.Shares of Hyundai Motor fell 2.5% at market open in Seoul on Friday.
KRX:000270KRX:005380TYO:9984
