China Blocks SoftBank's $5.4 Billion Acquisition of ABB's Robotics Business
On November 5, ABB confirmed that China's foreign investment security review authority had notified the prohibition of SoftBank's approximately $5.4 billion acquisition of ABB's robotics business from being implemented in China. Regulators expressed concerns that the industrial data, supply chain, and core technologies involved in the business could be transferred overseas and used to train AI models. China accounts for about 30% of ABB's robotics business.
China Halts SoftBank's $5.4 Billion Acquisition of ABB's Robotics Business
Chinese regulators have blocked Japanese conglomerate SoftBank Group's approximately $5.4 billion deal to acquire the robotics business of Swiss industrial giant ABB. ABB confirmed on November 5 that it had received notification from China's foreign investment security review authority prohibiting the transaction from being implemented in China, thereby obstructing SoftBank's plans to expand into the artificial intelligence and robotics industries.
Chinese regulators expressed concerns that the industrial data, supply chains, and core technologies involved in ABB's robotics business could be transferred overseas and used to train AI models. China accounts for about 30% of ABB's robotics business, making it a crucial market. This halt also reflects China's tightening scrutiny of foreign mergers and acquisitions in strategic technology sectors; previously, Meta's acquisition of AI startup Manus faced similar obstacles.
Source: Bloomberg
