China Blocks SoftBank's $5.4B Deal for ABB Robotics Unit, FT Reports

SoftBank's plan to buy ABB's robotics arm for $5.4 billion is going nowhere in Beijing. China's National Development and Reform Commission told the Japanese conglomerate it will not approve the deal, the Financial Times reported Thursday, citing multiple people familiar with the matter. SoftBank is now digging into what derailed the review and weighing whether a fresh approval attempt is even possible, per the FT.

The rejection cuts straight at CEO Masayoshi Son's vision for physical artificial intelligence. Son had placed robotics near the center of SoftBank's aggressive AI buildout, and ABB's unit was meant to be a cornerstone of that push. China also happens to be the robotics division's single biggest market, which makes the regulator's veto especially painful.

Investors voted with their feet. SoftBank shares slid 5% on Thursday, a far uglier session than the 0.5% dip in the S&P 500. The stock also caught heat from an overnight drop in Arm Holdings, the British chip designer that serves as a crown jewel in SoftBank's portfolio, after its current-quarter guidance came in below expectations.

The pain wasn't confined to SoftBank. Tech and AI names sold off broadly after U.S. Democrats swept the midterm elections and claimed majorities in both chambers of Congress. Democrats have signaled they want more regulatory scrutiny of AI and data centers — territory where SoftBank carries heavy exposure through its massive investment in OpenAI and the U.S. data center buildout.

For now, the $5.4 billion ABB deal sits in limbo, with no clear path to Chinese clearance and SoftBank still assessing its options, according to the FT.