China Blocks SoftBank Acquisition of ABB Robotics Division

The Chinese government has prevented the Japanese conglomerate SoftBank from completing its purchase of the robotics division of ABB. Regulators in China declared the $5.375 billion transaction unfeasible this Thursday.

This marks the second major veto of foreign investment by the Asian nation this year. Previously, China forced Meta Platforms to unwind its acquisition of the artificial intelligence startup Manus, which was valued at over $2 billion.

The blockage reflects Beijing's stricter stance on controlling strategic technologies. The country has intensified its scrutiny of foreign stakes in local companies that develop advanced innovations.

ABB stated that it remains in dialogue with SoftBank to assess the next steps for the transaction. The original agreement between the parties was signed in October of last year.

Rising geopolitical restrictions on capital and technology flows increase the perceived risk for global assets. This may pressure the liquidity of technology companies exposed to the Chinese market.