Key Takeaways
- • Beijing blocked the $5.4 billion SoftBank-ABB robotics deal earlier this week, and SoftBank and ABB are now exploring carving out the Chinese element of the transaction, according to Bloomberg News citing people familiar with the matter.
- • A carve-out would involve setting up a separate entity for the China business with different ownership.
- • ABB is also weighing alternatives, including finding another buyer, and the China business could be valued at $2 billion to $3 billion.
- • The block is the second deal China has stopped this year, following Beijing's April order that Meta unwind its more than $2 billion acquisition of AI startup Manus.
- • China accounts for about 30% of ABB's robotics business, its largest robotics market, with around 15,000 employees across roughly 30 local companies.
Summary
Japan's SoftBank and Swiss engineering group ABB are exploring a carve-out of the Chinese portion of a $5.4 billion robotics deal that Beijing blocked earlier this week, Bloomberg News reported on Saturday, citing people familiar with the matter. Under the approach described in the report, the China business would be placed in a separate entity with different ownership, allowing the rest of the transaction to proceed.
SoftBank did not respond to requests for comment outside business hours, and ABB declined to comment on the report. ABB is also considering other options, including finding another buyer for the China business, which the report said could be valued at between $2 billion and $3 billion.
The blocked transaction is the second deal China has halted this year. In April, Beijing ordered Meta to unwind its acquisition of AI startup Manus, valued at more than $2 billion, as authorities tighten scrutiny of foreign investment involving frontier technologies.
China is ABB's largest robotics market, accounting for about 30% of its robotics business. ABB operates about 30 local companies in China with around 15,000 employees across nearly 130 cities, and maintains online and offline sales channels in nearly 700 locations. The Reuters report that carried the story noted these figures alongside the carve-out discussions.
SoftBank did not respond to requests for comment outside business hours, and ABB declined to comment on the report. ABB is also considering other options, including finding another buyer for the China business, which the report said could be valued at between $2 billion and $3 billion.
The blocked transaction is the second deal China has halted this year. In April, Beijing ordered Meta to unwind its acquisition of AI startup Manus, valued at more than $2 billion, as authorities tighten scrutiny of foreign investment involving frontier technologies.
China is ABB's largest robotics market, accounting for about 30% of its robotics business. ABB operates about 30 local companies in China with around 15,000 employees across nearly 130 cities, and maintains online and offline sales channels in nearly 700 locations. The Reuters report that carried the story noted these figures alongside the carve-out discussions.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.