SoftBank and ABB Plan to Spin Off China Businesses to Salvage Robot Deal
SoftBank and ABB are considering splitting off the Chinese portion of ABB's robotics business to salvage a $5.4 billion acquisition halted by China. The plan involves creating a separate entity with differentiated equity structures, led by SoftBank. Sources familiar with the matter say the move could fail, and ABB is also exploring options like finding another buyer, with the business potentially valued at $2 billion to $3 billion.
SoftBank and ABB Plan to Spin Off China Business to Salvage Robotics Deal
SoftBank and ABB are considering spinning off the Chinese portion of ABB's robotics business to salvage a $5.4 billion acquisition that has been blocked by China. The proposed plan involves establishing a separate entity with differentiated equity for the China business, with SoftBank taking the lead.
People familiar with the matter said the move could fail, and ABB is also evaluating other options, including seeking a different buyer, with the business potentially valued at between $2 billion and $3 billion. The Office of the National Security Review Mechanism for Foreign Investment in China halted the original deal this Thursday. Both ABB and SoftBank declined to comment.
Source: Bloomberg
