China blocks SoftBank's $5.4 billion acquisition of ABB robotics unit

China's regulatory authorities have rejected SoftBank Group's proposed $5.4 billion acquisition of ABB Ltd.'s robotics and discrete automation business, according to sources familiar with the matter. The decision represents a major obstacle to the Japanese investor's strategy of consolidating industrial robotics assets globally.

The transaction, initially announced in 2018, required approval from multiple jurisdictions given the cross-border nature of the deal and the sensitive nature of robotics technology. While regulators in other key markets had previously cleared the transaction, Chinese authorities ultimately determined that the acquisition did not align with national interests.

ABB, the Swiss engineering multinational, had agreed to divest its robotics division as part of a broader portfolio restructuring. The blocked transaction reflects growing scrutiny by Beijing of foreign acquisitions involving advanced manufacturing technologies, particularly those with potential dual-use applications in industrial and defence sectors.

The failed deal underscores mounting challenges facing international technology and industrial companies seeking to expand operations in China, as regulatory oversight has intensified in recent years. SoftBank has not yet disclosed whether it intends to appeal the decision or pursue alternative strategies.