China blocks SoftBank deal for ABB robotics unit — The Japan Times

In China, a state agency has blocked the sale of the robotics division of Swiss-Swedish conglomerate ABB to Japan’s SoftBank Group for $5.4 billion. ABB announced the decision in an emailed statement, The Japan Times reports.

Foreign investment review

According to ABB’s statement, the deal was prohibited by China’s Office of the Foreign Investment Security Review Mechanism. Earlier, the Financial Times reported that SoftBank’s acquisition was subject to a review by China’s state planning agency.

Beijing has strengthened controls this year over the transfer of important information abroad. The report notes that data are the foundation for the development of artificial intelligence, including robotics, where they are needed to further improve robots’ performance.

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Blow to SoftBank’s plans

SoftBank founder Masayoshi Son called the purchase of ABB Robotics an important part of the company’s strategy to expand its presence in physical artificial intelligence. ABB’s division has more than 7,000 employees, supplies robotic manipulators and industrial equipment to manufacturers such as BMW, and also has a significant presence in China.

The acquisition was expected to support SoftBank’s revenue and profit while the company awaits OpenAI’s stock market listing. On Thursday, SoftBank shares in Tokyo fell by about 7%. A company representative declined to comment.

Bloomberg Intelligence analyst Kirk Boodry said that ABB Robotics lags behind startups in SoftBank’s portfolio in advanced physical AI developments, but its industry expertise and manufacturing capabilities were expected to help turn robotics concepts into a real business.