“Chinese government blocks SoftBank Group Corp.’s acquisition of ABB Ltd.’s robotics division”

[Financial News] The Financial Times (FT) reported on the 5th that the Chinese government had blocked Japanese company SoftBank Group Corp.’s plan to acquire ABB Ltd.’s robotics division for $5.4 billion (about 7.4 trillion won).
SoftBank Group Corp. was reportedly notified by China’s National Development and Reform Commission (NDRC), which is responsible for the security and stability of China’s supply chain, that the acquisition deal would not be approved.
ABB Ltd., a Swiss-Swedish joint venture, established a joint venture with a Chinese partner in 1992.
It now produces at least 90% of the robots made for Chinese customers and employs 12,700 people in China alone. The central government and the Shanghai municipal government are fully supporting construction of a $150 million robotics megafactory in Pudong.
SoftBank Group Corp. agreed last October to acquire ABB Ltd.’s robotics division to enter a field expected to grow rapidly following the artificial intelligence (AI) boom.
It cleared China’s antitrust review in February, but was notified of the rejection at the national security review stage this time.
As recently as last week, the mood within the company was reportedly optimistic about approval.
SoftBank Group Corp. is trying to determine the reason for the rejection and considering whether it can reapply.
The FT explained, “The Chinese government was concerned that robotics technology developed in China would pass to a Japanese company, amid rising tensions between China and Japan and fierce competition between the United States and China in advanced fields.”
During the NDRC review, conditions were reportedly proposed, including selling part of ABB Ltd.’s robotics business to a Chinese owner and keeping some of its intellectual property in China.
Chinese regulators were reportedly extremely wary of the possibility that robotics-related data accumulated in China could be used to train AI models from OpenAI and other companies in which SoftBank Group Corp. is a major investor.
The FT reported that the failed acquisition would deal a major blow to SoftBank Group Corp. Chairman Masayoshi Son’s plan to gain an early lead in physical AI.
With a plan to boost productivity by combining robotics and AI, Chairman Son had viewed ABB Ltd.’s robotics business, together with U.S. AI robotics company Roje, as a key part of the effort.


[email protected] Lee Seok-woo, International Affairs Specialist Reporter