China Blocks SoftBank's $5.4 Billion Deal
China has blocked SoftBank Group's planned $5.4 billion acquisition of ABB's robotics division. This decision disrupts the Japanese firm's goals in artificial intelligence. The National Development and Reform Commission (NDRC), China's key state planner, told SoftBank that the deal would not go ahead. This was due to worries about supply chain security and data protection, according to multiple sources.
The acquisition was first announced in October 2025. It was expected to boost SoftBank's revenue as it aimed to grow its role in AI. ABB confirmed on Thursday that it has received notice of the prohibition from Chinese regulators. The robotics unit is important for SoftBank. More than 90% of its robots for Chinese customers are made locally, and the division employs about 12,700 people in China.
Chinese authorities reportedly had concerns that data from robotics production could be used abroad. This could potentially help AI models created by companies like OpenAI, in which SoftBank has a large stake. The Financial Times reported that there were discussions about keeping intellectual property in China. A spin-off of parts of the business to local owners was also considered.
SoftBank is now looking into whether it can seek approval for the deal again. The company had expected regulatory clearance, as the deal had passed a competition review earlier this year. After the news broke, SoftBank's shares fell by over 7% in Tokyo. This drop reflects investor worries about the impact of this setback.
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The blocking of this acquisition may lead to more scrutiny of foreign investments in China, especially in technology sectors. Investors in SoftBank and related areas could experience volatility as the firm reassesses its strategy for AI growth. Stay tuned for updates on SoftBank's next steps regarding this acquisition and any possible regulatory changes in China.
Based on reporting by: swissinfo.ch