China blocks SoftBank’s US$5.4 billion takeover of ABB’s robotics division

Japan's SoftBank has been denied a US$5.4 billion takeover of ABB's robotics division by China's state planner, the Swiss firm announced on Thursday. This marks the second major deal blocked by China this year, following Meta Platforms' forced to abandon its US$2 billion-plus acquisition of artificial intelligence start-up Manus.

Beijing's recent tightening of scrutiny on foreign investment in domestic start-ups developing frontier technologies appears to have played a role in the decision. The prohibition was first reported by the Financial Times on Thursday, and ABB stated that it was in close dialogue with SoftBank working on the transaction. China's National Development and Reform Commission (NDRC) has the authority to review foreign investments that may have national security implications.

The NDRC declined to comment on the matter. ABB identified China as its largest robotics market, accounting for around 30 percent of its robot-related business. The company operates approximately 30 local companies in the country, employing around 15,000 people across nearly 130 cities, as well as online and offline channels in nearly 700 cities.

ABB Engineering (Shanghai) houses the global robotics headquarters, serving as a critical research and development center and production base for the ABB Group.