China Halts SoftBank's Acquisition of ABB's Robotics Business

China has halted SoftBank's $5.4 billion acquisition of ABB's robotics business. The companies are continuing negotiations with Chinese authorities and trying to prevent the deal from ultimately falling through.

According to Reuters, Chinese authorities see a risk that data collected in the robotics sector could be transferred to the US. Also under scrutiny is SoftBank's cooperation with Western tech companies, including OpenAI.

China is the largest market for ABB's robotics business, accounting for roughly 30% of its sales. The company's headquarters, research center, and manufacturing facility are located in Shanghai. This is the second major tech deal China has blocked this year.

Source: Reuters