Chinese authorities have told SoftBank they will not approve its $5.4 billion plan to acquire ABB's robotics business, the Financial Times reported, citing people familiar with the matter. The decision means SoftBank's proposed takeover of ABB's global robotics unit has stalled at China's regulatory stage.
Deal background and the business
ABB is a Swiss-Swedish multinational whose robotics unit is focused on the Chinese market and has a mega-factory in Pudong, Shanghai. The business holds a major position in the global robotics industry, and the transaction is valued at $5.4 billion.
SoftBank had planned to use the acquisition of ABB's robotics business to expand further into robotics and automation. But the deal requires approval from regulators in the relevant countries, and China is a key one.
Regulatory decision and reactions
Chinese authorities have explicitly told SoftBank they will not approve the acquisition, the Financial Times reported. As of publication, SoftBank and ABB had not publicly responded, and Chinese regulators had not issued a formal statement.
People familiar with the matter told the Financial Times about the decision, but the specific grounds for the rejection have not been disclosed.
The decision underscores China's regulatory stance on cross-border technology mergers and acquisitions.
Impact and what to watch
ABB's robotics business has a significant presence in the Chinese market, and its Pudong mega-factory is a key node in the company's global production network. A blocked deal could affect SoftBank's strategic push into robotics and would also have some impact on the global robotics industry landscape.
What to watch next: whether SoftBank adjusts the deal or resubmits an application; what happens to ABB's robotics business; and how Chinese regulators approach approvals for similar cross-border technology deals.