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ABB said on Nov. 5 that SoftBank had been informed that China’s foreign-investment security review office prohibited the acquisition of ABB’s robotics business in China. ABB says the companies remain in talks; no public Chinese decision or official explanation has been released, and the status of the deal outside China is unclear.
ABB said on Nov. 5 that SoftBank had informed it that China’s foreign-investment security review office prohibited the acquisition of ABB’s robotics business in China, complicating SoftBank’s planned $5.375 billion purchase of the global robotics division. ABB said the companies remain in close dialogue, but it has not said whether the transaction can proceed outside China or what Beijing’s decision means for the rest of the deal.
In a statement, ABB said the Office of the Working Mechanism for Foreign Investment Security Review in China had prohibited the acquisition of its robotics business in China. ABB said SoftBank manages the regulatory approval process and that the companies are “in close dialogue and are working constructively on the transaction.” The statement does not publish the Chinese decision or explain its reasoning.
The transaction was agreed on Oct. 8, 2025, at an enterprise value of $5.375 billion. The European Union cleared it in March 2026. As recently as Oct. 20, ABB said it expected the deal to close before the end of 2026. The new statement describes a prohibition concerning the China business; it does not say the entire global deal has been cancelled.
The Financial Times reported on Nov. 5, citing people familiar with the matter, that China’s National Development and Reform Commission informed SoftBank of the decision. The report also said SoftBank was assessing whether it could seek approval again. Those details have not been confirmed in a published Chinese decision or a statement from SoftBank. At a regular briefing, Chinese Foreign Ministry spokesperson Guo Jiakun declined to address the report directly.
Why China Says No to SoftBank’s $5.4 Billion Robot Deal
China prohibited SoftBank’s acquisition of ABB’s robotics business in China. The global deal’s status and the reason for the decision remain unclear.
What China’s decision covers
ABB’s statement identifies the China business; it does not say the entire global deal is cancelled.
- China prohibited the acquisition of ABB’s robotics business in China.
- ABB says the companies remain in dialogue.
- Whether the global deal can proceed without the China business.
- Whether SoftBank will seek approval again.
How the deal reached this point
The transaction received one major regional approval, while China’s security review presents a new obstacle.
Why robotics are in focus
The deal concerns industrial technology with a large manufacturing footprint in China.
A major robotics market
China accounted for 59% of industrial robot installations worldwide in 2025.
Data and AI
The Financial Times reported concerns about robotics data moving abroad to train foreign AI models. China has not published an official reason.
What businesses and readers should watch
The next update could clarify the deal’s scope and whether the parties will change course.
- Whether ABB or SoftBank announces a revised transaction plan.
- Whether SoftBank seeks another review, as reported by the Financial Times.
- Whether the companies explain a path forward for the China business.
- The prohibition concerns the proposed acquisition; available statements do not describe changes to ABB robots already operating in China.
A Security Review Reaches Factory Robots
The decision puts industrial robotics at the center of a foreign-investment security dispute. Robots are used in manufacturing tasks such as welding and materials handling, and the sale would place ABB’s robotics business under SoftBank, whose strategy includes what it calls “Physical AI.” The Financial Times reported that officials were concerned robotics data might move abroad and be used to train foreign AI models. That concern is reported, not an official explanation from China.
The development also shows that a cross-border industrial acquisition can face a national-security review alongside competition reviews. For companies planning similar transactions, the case highlights the need to account for country-specific approval risks. The practical effect on ABB robots already operating in China is not addressed in the available statements; the announced prohibition concerns the acquisition.
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From Agreement to Expected Closing
ABB, the Swiss-Swedish engineering group, agreed to sell its robotics division to SoftBank in October 2025. The deal was valued at $5.375 billion in enterprise value. The European Union approved the transaction in March 2026, and ABB said in October that it expected completion in the fourth quarter of that year.
China has a major role in the industrial robotics market. The International Federation of Robotics reported that China installed 354,000 industrial robots in 2025, representing 59% of the world total for that year. That figure provides market context; it does not establish the reason for China’s review decision.
ABB’s Nov. 5 statement is the only decision-related text attributed to the companies in the source material. It relays what SoftBank told ABB and refers specifically to the acquisition of the China business. The Financial Times’ account adds details about the NDRC and possible next steps, but those remain attributed to the newspaper’s sources.
““The Office of the Working Mechanism for Foreign Investment Security Review in China has prohibited the acquisition of the ABB Robotics business in China.””
— ABB
The Scope and Reason Remain Unknown
China has not published a decision text or official reason in the material available. ABB’s wording identifies the China business as prohibited from being acquired, but does not explain whether the restriction can be addressed through changes to the transaction or whether it affects approvals elsewhere.
It is also unclear whether SoftBank can reapply, whether the global deal can close without the China business, and how other regulators will respond. SoftBank had not issued a public statement in the source material. The reported concern about data and AI training comes from the Financial Times and has not been confirmed by Chinese officials.
SoftBank and ABB Weigh Their Options
ABB said the companies remain in dialogue, while SoftBank manages the approval process. The Financial Times reported that SoftBank was considering whether to seek approval again, but neither company had publicly confirmed a next filing or a revised transaction plan in the source material. The next clear milestone would be a statement from SoftBank or ABB explaining whether they will change the deal, pursue another review, or proceed with a transaction that excludes the China business.
Key Questions
Did China cancel the entire SoftBank–ABB deal?
ABB said China prohibited the acquisition of ABB’s robotics business in China. ABB has not said that the entire global deal is cancelled.
What reason did China give for the prohibition?
No official reason has been published in the source material. The Financial Times reported concerns about robotics data moving abroad and being used to train foreign AI models; that account has not been confirmed by Chinese officials.
How much is the transaction worth?
The announced enterprise value is $5.375 billion. The source does not give a revised value for a deal that might exclude China.
Can SoftBank still seek approval?
The Financial Times reported that SoftBank was assessing whether it could seek approval again. ABB and SoftBank had not publicly confirmed a reapplication in the source material.
Does the decision affect ABB robots already operating in China?
The statement concerns the proposed acquisition. It does not describe any change to existing ABB robot operations or equipment in China.
Source: Thorsten Meyer AI
