CatalystEU/UK

Softbank’s $5.4 bln takeover of ABB robotics unit blocked by China- FT

China blocking SoftBank's $5.4 bln ABB robotics takeover is a major cross-border M&A catalyst.

Context

What happened: Chinese regulators told SoftBank Group Corp. (TYO:9984) they will not allow its $5.4 billion acquisition of ABB Ltd's (SIX:ABBN) robotics division, per the Financial Times. Why it matters: The block undercuts CEO Masayoshi Son's push into physical artificial intelligence, with robotics outlined as a major part of SoftBank's AI ambitions. China is the biggest market for ABB's robotics unit, and SoftBank is assessing whether it can seek approval again. Market: -2.2% today ($70.88), +17.5% YTD, 0.9x vol — as of 16:18 UTC

What changed

Chinese regulators told SoftBank Group Corp. (TYO:9984) they will not allow its $5.4 billion acquisition of ABB Ltd's (SIX:ABBN) robotics division, per the Financial Times.

Why it matters

The block undercuts CEO Masayoshi Son's push into physical artificial intelligence, with robotics outlined as a major part of SoftBank's AI ambitions. China is the biggest market for ABB's robotics unit, and SoftBank is assessing whether it can seek approval again. Market: -2.2% today ($70.88), +17.5% YTD, 0.9x vol — as of 16:18 UTC

Sources

eodhd