China Blocks SoftBank's $5.4 Billion ABB Robotics Deal, Citing Data Security Risks
Updated
Updated · The New York Times · Nov 5
China Blocks SoftBank's $5.4 Billion ABB Robotics Deal, Citing Data Security Risks
3 articles · Updated · The New York Times · Nov 5
Summary
ABB said Thursday that China stopped SoftBank's $5.4 billion purchase of its robotics division, derailing a deal announced last year because Chinese approval was required.
Chinese regulators were concerned robotics data could be transferred overseas and used to train A.I. models, a sensitive issue because China is ABB's largest robotics market and much of its local production is based in Shanghai.
The decision deepens a tougher Chinese stance on foreign takeovers in strategic technology, following April's order for Meta to unwind its $2 billion acquisition of Chinese A.I. startup Manus.
SoftBank shares fell almost 7% on Thursday and are down nearly 30% over the past year, adding pressure on Masayoshi Son's A.I.-heavy strategy after roughly $65 billion invested in OpenAI.