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SoftBank, ABB Eye China Robotics Deal Split After Ban
7 Nov
Summary
- Japan's SoftBank and ABB are exploring a China business carve-out.
- The original $5.4 billion robotics deal was blocked by Beijing.
- A separate entity for China's business could be valued at $2-3 billion.
SoftBank and ABB are reportedly exploring a strategy to separate the Chinese segment of their $5.4 billion robotics deal following its blockage by Beijing. This potential carve-out would involve creating a distinct entity for the China business, with different ownership structures.
The original deal's fate is uncertain, as ABB is also considering other options, including finding a new buyer for the Chinese operations. The separated business could potentially be valued between $2 billion and $3 billion.
This development follows China's increased scrutiny of foreign investments in frontier technologies, notably Meta's acquisition of AI startup Manus being ordered unwound earlier this year. China represents ABB's largest robotics market, accounting for approximately 30% of its robotics business.
