China Blocks Softbank's $5.4Bn Takeover Of ABB's Robotics Division

China Blocks Softbank's $5.4Bn Takeover Of ABB's Robotics Division

MENAFN- Swissinfo) China has told SoftBank it will not allow the $5.4 billion (CHF4.4 billion) acquisition of ABB's robotics division to go ahead in a shock move that threatens to throw Masayoshi Son's ambitions in physical AI into disarray. Select your language

SoftBank was recently informed that the deal would be blocked by China's National Development and Reform Commission, the powerful state planner tasked with safeguarding supply chain security and stability, according to multiple people familiar with the matter.

China is the biggest market for ABB's robotics unit, with more than 90 per cent of its robots for Chinese customers manufactured locally. The Swiss-Swedish company employs about 12,700 people in China.

External ContentUntil last week, people close to SoftBank and those briefed on the NDRC's process in China had expected the deal to be approved despite it being subject to a foreign investment security review.

ABB confirmed in a statement on Thursday it has been informed by SoftBank that Chinese regulators had“prohibited the acquisition of the ABB Robotics business in China”.

SoftBank is now trying to de...