TOKYO: SoftBank Group Corp and ABB Ltd are looking at carving out the Chinese part of a giant robotics deal as they explore ways to salvage a transaction blocked by Beijing, according to people familiar with the matter.
The two companies and their advisers are trying to find a solution after China’s powerful Office of the Working Mechanism for Foreign Investment Security Review last Thursday halted SoftBank’s move to acquire the ABB unit valued at US$5.4bil.
They are studying how the Chinese business, which is ABB Robotics’ largest single market, could be separated out, the people said.
SoftBank is leading the push, people added, asking not to be identified as the talks were private. These efforts may fail and there’s no certainty they’ll result in a deal, the people said.
ABB is also reviewing other options including finding another buyer, one person said, adding that the business could be potentially valued at US$2bil to US$3bil.
ABB and SoftBank declined to comment. — Bloomberg
