China Blocks SoftBank's US$5.4 Billion ABB Robotics Deal

China has prohibited SoftBank Group from acquiring ABB’s robotics business in the country, putting the Japanese group’s planned US$5.4 billion purchase of the Swiss engineering firm’s robotics division in doubt, Swiss news service Swissinfo reported.

ABB said in a statement on Thursday that the Office of the Working Mechanism for Foreign Investment Security Review in China had barred the acquisition of the ABB Robotics business in China. ABB said it had been informed of the decision by SoftBank, which is managing the regulatory approval process.

Deal in jeopardy

ABB announced in October 2025 that it had signed an agreement to sell its robotics division to SoftBank Group Corp at an enterprise value of US$5.375 billion, according to the company’s statement. Swissinfo said the SoftBank offer had been chosen over an earlier plan to list the robotics unit, and that ABB had expected net proceeds of about US$5.3 billion, part of which was earmarked for acquisitions.

The European Commission had already cleared the takeover, Swissinfo reported. Forbes said the transaction had been expected to close by mid to late 2026.

China is the robotics division’s largest market, according to Swissinfo, which said more than 90% of the robots sold to Chinese customers are produced locally. ABB has operated a robot factory in Shanghai since 2022, built at a cost of US$150 million, the outlet added.

Forbes, citing an October 2025 statement, reported that the robotics business employs 7,000 people across manufacturing hubs in China, the United States and Sweden. It generated EBITDA of US$313 million on revenue of US$2.3 billion in 2024, down from US$385 million and US$2.5 billion respectively in 2023, Forbes said.

Data concerns reported

ABB did not give a reason for the decision. Citing the Financial Times, Swissinfo reported that Chinese authorities were concerned robotics production data could leave the country and be used to train artificial intelligence models, possibly including those of OpenAI, in which SoftBank holds a significant stake.

According to the same report, officials also examined whether intellectual property needed to remain in China, and a spin-off of parts of the business to Chinese owners had been considered. The FT said the ruling surprised SoftBank, which had expected approval as recently as the previous week.

SoftBank chairman and chief executive Masayoshi Son had described physical AI as “Softbank’s next frontier” when the deal was announced, Forbes reported.

What’s next

ABB said the two companies “are in close dialogue and are working constructively on the transaction.” Asked by Swiss financial news agency AWP about the consequences for the overall sale and next steps, ABB declined to comment further, Swissinfo said.

SoftBank is assessing whether a fresh attempt at securing approval is possible, the FT reported, according to Swissinfo. Neither company has set out a timeline for a decision on the remainder of the deal.

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