Chinese authorities have blocked a major deal involving ABB Ltd. and SoftBank Group Corp., halting the sale of ABB’s robotics unit to the Japanese investment firm. The $5.4 billion transaction was prohibited by China’s Office of the Working Mechanism for Foreign Investment Security Review, according to an emailed statement from ABB.
The deal was expected to strengthen SoftBank’s revenue and profit as it awaits a potential boost from OpenAI’s public debut. The acquisition would have expanded SoftBank’s presence in the field of physical AI, a key growth area for the company.
SoftBank has been actively pursuing investments in artificial intelligence and robotics, aiming to diversify its portfolio beyond its traditional tech and telecom holdings. The blocked deal represents a setback for the firm’s strategic plans in this sector.
ABB’s robotics unit is a significant player in the industry, and its sale to SoftBank would have marked a major shift in ownership. The decision by Chinese regulators underscores the scrutiny faced by foreign investments in critical technology sectors.