China blocks SoftBank's $5.4 billion acquisition of ABB Robotics business

ABB stated that the Chinese government has blocked SoftBank Group's acquisition of its robotics business for $5.4 billion. SoftBank indicated that the Foreign Investment Security Review Office under the National Development and Reform Commission has prohibited its acquisition of ABB's robotics business in China.

ABB and SoftBank are currently communicating about the deal and seeking ways to advance the transaction. ABB's robotics business employs over 7,000 people, supplying robotic arms and industrial machinery to manufacturers like BMW, and has a large-scale operation in China. SoftBank founder Masayoshi Son previously listed this acquisition as part of his strategy to expand into the artificial intelligence industry.