SoftBank and ABB Discuss China Carve-Out to Save Deal
SoftBank and ABB are negotiating a carve-out of Chinese robotics operations after regulators blocked a proposed 5.4 billion dollar acquisition.
SoftBank Group is leading discussions with ABB to carve out the robotics company's Chinese operations to salvage a proposed 5.4 billion dollar acquisition. The move follows a decision by Chinese regulators on Thursday to block the transaction due to concerns over industrial technology and data transfers.
China serves as the robotics division's largest individual market and houses a major facility in Shanghai. If the carve-out fails to resolve regulatory issues, ABB is evaluating alternative buyers, with a potential valuation between 2 billion and 3 billion dollars. The company is also considering reviving a plan to spin off the division through an initial public offering in Switzerland or Sweden.
The regulatory blockage has already impacted ABB's financial position, reducing its estimated acquisition capacity by half to approximately 5 billion dollars and contributing to a decline in its share price.
