China Blocks SoftBank's $5.4 Billion ABB Robotics Acquisition

Chinese government departments have blocked SoftBank Group's planned $5.4 billion acquisition of ABB's robotics business, complicating a deal SoftBank had linked to its artificial intelligence expansion.

SoftBank identified an office under China's National Development and Reform Commission as the body that prohibited the acquisition. The office handles foreign investment security reviews. ABB and SoftBank are discussing the transaction and seeking a way to advance it.

ABB's robotics business employs more than 7,000 people and supplies robotic arms and industrial machinery to manufacturers including BMW. It has large operations in China, where the acquisition was barred.

SoftBank's founder had previously described the purchase as part of the company's effort to expand its position in the AI industry. The ongoing discussions between ABB and SoftBank are focused on finding a path forward. The blocked purchase connects SoftBank's stated AI expansion with ABB's robotics operations and their substantial presence in China.