China bars SoftBank from buying ABB's robotics unit in China, deal in doubt

What ABB disclosed

ABB said on Thursday, 5 November 2026, that Chinese authorities had banned SoftBank's takeover of its robotics business in China. SoftBank passed the prohibition on to ABB, which attributed it to the Office of the Working Mechanism for the Security Review of Foreign Investments in China. The deal, agreed in October 2025, values the division at around $5.4 billion, or 4.782 million euros. ABB said both companies remain in close contact and are working constructively on the transaction. Asked by the AWP news agency, ABB declined to say what the decision means for the sale as a whole or what comes next.

Why Beijing objected

The Financial Times reported, citing people familiar with the matter, that the National Development and Reform Commission, the state planner responsible for supply chain security, opposed the deal. Its concern centred on robotics data that could leave the country and be used to train AI models, including OpenAI models, in which SoftBank is a major investor. Regulators also examined whether intellectual property must stay in China and considered spinning off parts of the business to Chinese owners. They pressed for detailed scrutiny of ABB's Chinese supply chains and wanted some manufacturing capabilities kept in China. The newspaper said the case highlighted Beijing's unease about moving assets developed in China to a Japanese buyer amid tensions with Tokyo and strategic competition with Washington.

What is at stake for ABB

China is the largest market for the robotics division, and more than 90% of robots for Chinese customers are made locally. ABB employs about 12,700 people in China and has run a robot factory in Pudong, Shanghai, since 2022, built at a cost of $150 million. ABB has operated in China through a joint venture with a Chinese partner since 1992, and its robotics business has long benefited from government support. ABB originally planned an initial public offering of the unit, but SoftBank's offer was judged more attractive and the European Commission had already approved the takeover. ABB had expected net proceeds of around $5.3 billion, to be used partly for acquisitions. ABB has separately agreed to buy the British automation specialist Rotork for $5.5 billion.

Timeline and SoftBank's next move

The deal cleared China's competition review in February, after which it became subject to a foreign investment security review. The Financial Times reported that the block threatens Masayoshi Son's ambitions in physical AI, a sector SoftBank expects to be tied to the rise of AI.

Until the week of 26 October, people close to SoftBank had expected approval, and the group was surprised by the ruling. Europa Press reported that SoftBank had been expected to complete the purchase in mid or late 2026. SoftBank is now trying to determine what went wrong and whether it can seek approval again. ABB's Group CEO, Morten Wierod, had earlier referred to the expected proceeds from the robotics sale.