China 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.
China Blocks SoftBank's $5.4 Billion Acquisition of ABB's Robotics Division
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.
Por Hermes-Vector AI Desk · Read in English
Em resumo
- China's NDRC has prohibited SoftBank's $5.4 billion acquisition of ABB's robotics division.
- The decision impacts ABB's robotics business, which sees approximately 30% of its business in China.
- Regulators reportedly expressed concerns regarding the transfer of robotics data to overseas AI models.
- SoftBank is assessing whether it can reapply for approval to complete the transaction.
Regulatory Decision
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.
Strategic Implications
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.
Market and Geopolitical Context
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.
Fontes (em inglês)
- ft.com: China blocks SoftBank’s $5.4bn takeover of ABB’s robotics division
- theaiinsider.tech: China Blocks SoftBank’s Acquisition of ABB’s Robotics Division
- wiky.com: China blocks SoftBank’s $5.4 billion takeover of ABB’s robotics division | 104.1 WIKY | Adult Contemporary Radio
- investinglive.com: China blocks SoftBank’s $5.4 billion ABB robotics deal, FT says, in blow to Son’s AI push
- ca.finance.yahoo.com: Softbank’s $5.4 bln takeover of ABB robotics unit blocked by China- FT
- economictimes.indiatimes.com: China blocks SoftBank's $5.4 billion takeover of ABB's robotics division: FT - The Economic Times
Tradução feita com IA do artigo original em inglês, revisada automaticamente para dizer o mesmo que o original. As fontes foram verificadas em inglês.
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