Chinese authorities have blocked SoftBank's $5.4 billion acquisition of the robotics division of ABB. The deal was intended to provide the foundation for Roze AI, a new SoftBank entity that the company planned to spin off and take public this year.
ABB, based in Zurich, relies on China as its largest market for robotics. The division produces industrial and logistics equipment, including robotic arms and autonomous vehicles, and employs several thousand people in the country.
Beijing's decision reflects a tightening policy on the export of high-tech developments. The government aims to prevent local expertise and technology from benefiting foreign competitors, particularly those from Japan, amid ongoing geopolitical tensions.
SoftBank is currently facing significant financial pressure. Its investments in OpenAI, totaling $64 billion, have partially lost value, and rising interest rates have increased the company's debt burden. Following the news, SoftBank shares fell by 6.7 percent.
The company's market capitalization has dropped by more than $140 billion, with share prices now over 50 percent below the record high reached in June. China has recently intensified its control over international mergers and acquisitions.
