China blocks SoftBank acquisition of ABB Robotics business

China's National Development and Reform Commission (NDRC) has vetoed the acquisition of ABB Robotics' China operations by SoftBank. The decision prevents ABB from realizing an expected net gain of approximately 5.3 billion US dollars from the transaction.

Reports indicate that Beijing's concerns center on the potential outflow of sensitive industrial data. There are fears that such data could be used to train artificial intelligence models, particularly given SoftBank's involvement with OpenAI. The NDRC has also investigated the security of intellectual property and production capacities within the country.

In response to the veto, SoftBank and ABB are reportedly exploring a restructuring plan. According to Bloomberg, the companies are considering spinning off the China-based business into a separate, Chinese-managed entity, while allowing SoftBank to proceed with the acquisition of the remaining global operations. ABB is also reportedly evaluating other alternatives, such as seeking different buyers or pursuing an initial public offering.