China's National Development and Reform Commission has prohibited SoftBank's $5.4 billion takeover of ABB's robotics business, a move impacting SoftBank's physical AI ambitions.
China has told SoftBank it will not allow the $5.4 billion acquisition of ABB’s robotics division to go ahead, according to multiple people familiar with the matter reported by the Financial Times.
SoftBank was recently informed that the deal would be blocked by China’s National Development and Reform Commission (NDRC), the country's state planner, according to reports from the Financial Times and Reuters. ABB confirmed in a statement on Thursday that it has been informed by SoftBank that Chinese regulators had “prohibited the acquisition of the ABB Robotics business in China”.
SoftBank is currently attempting to determine the reasons for the decision and whether it can seek approval again. The NDRC review reportedly included scrutiny of ABB’s Chinese supply chains and a demand to retain manufacturing capabilities in China. Additionally, regulators had reportedly examined the possibility of keeping intellectual property related to the robotics business in China, potentially requiring parts of the business to be spun off to Chinese owners.
The deal was a central component of SoftBank founder Masayoshi Son’s strategy regarding "physical AI," which involves combining advanced AI systems with robotics technology. The acquisition was intended to combine ABB’s industrial robotics expertise with SoftBank's capabilities in AI and next-generation computing.
China is a critical market for the division. According to ABB, China accounts for approximately 30% of its robotics business. The company operates about 30 local companies in China with approximately 15,000 employees across nearly 130 cities. In December 2022, ABB opened a $150 million robotics factory in Pudong, Shanghai, which includes a research and development center focused on AI, machine vision, and robotics software.
The decision comes amid heightened tensions between China and Japan. The NDRC review reportedly highlighted concerns regarding robotics data being transferred overseas, where it could be used to train AI models, including those developed by OpenAI, in which SoftBank is a major investor.
Following the news, SoftBank shares fell approximately 5% in Tokyo trading. The regulatory obstacle follows a similar intervention by Chinese authorities earlier this year, when the NDRC ordered Meta to unwind its $2 billion acquisition of the AI startup Manus.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
The day's checked news, by email
One short email a day with the top stories. Free, and you can unsubscribe in one click.
Or follow for the latest news:
No comments yet. Start the discussion.
BusinessTrending
Air India has introduced a new seasonal service connecting Mumbai and Toronto with three weekly direct flights, increasing capacity between India and Canada.
BusinessTrending
CVS Health announced plans to separate its retail pharmacy business from its insurance and pharmacy services operations, a process expected to be completed in the first half of 2028.
