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SoftBank, ABB explore China carve-out to salvage robotics deal, Bloomberg News reports
Reuters • • business
Key Points:
- Japan's SoftBank and Swiss engineering group ABB are considering separating the Chinese portion of a $5.4 billion robotics deal after Beijing blocked the transaction earlier this week.
- The proposed carve-out would involve creating a separate entity for the China business with different ownership, according to sources cited by Bloomberg News.
- This is the second major deal blocked by China this year amid increased scrutiny of foreign investments in frontier technologies, following Meta's forced unwinding of its $2 billion AI startup acquisition.
- ABB is also exploring other options, including finding a different buyer for the Chinese business, which could be valued between $2 billion and $3 billion.
- China represents ABB's largest robotics market, accounting for about 30% of its robotics revenue, with extensive operations including 30 local companies and 15,000 employees across nearly 130 cities.
