Chinese regulators have prohibited SoftBank Group from acquiring the China operations of ABB's robotics business, a core element of the Japanese firm's $5.375 billion deal to buy the Swiss-Swedish industrial automation unit. ABB confirmed on November 5, 2026, that SoftBank informed it of the decision by China's Office of the Working Mechanism for Foreign Investment Security Review. SoftBank separately stated it received the formal notification on November 4.
The deal, announced in October 2025, aimed to transfer ABB's entire robotics division to SoftBank to accelerate the Japanese company's push into physical AI applications that combine advanced software with industrial hardware. China represents ABB Robotics' largest market, with more than 90 percent of robots sold to Chinese customers manufactured locally, making regulatory clearance essential for the full transaction.
Deal Background and Structure
On October 8, 2025, SoftBank Group entered a definitive agreement with ABB Ltd to acquire the robotics business for an enterprise value of $5.375 billion. ABB planned to carve out the division into a new holding company, with SoftBank acquiring all shares through a subsidiary. Closing was targeted for mid-to-late 2026, subject to regulatory approvals in the European Union, China, the United States and other jurisdictions.
ABB Robotics employed approximately 7,000 people across manufacturing sites in China, the United States and Sweden. The unit generated $2.279 billion in revenue and $313 million in EBITDA in 2024, down from $2.452 billion revenue and $385 million EBITDA the prior year. Operational EBITA stood at $277 million in 2024.
SoftBank Chairman and CEO Masayoshi Son described the acquisition as central to the company's strategy: “SoftBank’s next frontier is Physical AI. Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics — driving a groundbreaking evolution that will propel humanity forward.”
ABB CEO Morten Wierod stated at the time of the announcement that SoftBank would provide “an excellent new home for the business and its employees” and that the combination would strengthen the division’s position through SoftBank’s capabilities in AI, robotics and next-generation computing.
China's Role and Regulatory Decision
China accounts for roughly 30 percent of ABB’s robotics business and has long been its biggest single market. ABB has operated in the country since 1994, maintains a major manufacturing and research footprint including a Shanghai mega-factory opened in 2022, and produces the large majority of robots destined for Chinese customers on site. Local supplier content has risen above 80 percent in recent years.
The transaction cleared China’s competition review earlier but remained subject to a separate foreign investment security review. The Office of the Working Mechanism for Foreign Investment Security Review ultimately prohibited the acquisition of the ABB Robotics business in China. Reports from multiple outlets indicated concerns centered on the potential transfer of sensitive operational data and expertise developed in China to a foreign buyer with extensive ties to Western AI firms, including SoftBank’s major investments in OpenAI.
This marks the second high-profile technology-related deal blocked by Chinese authorities in 2026, following an earlier order requiring Meta to unwind its more than $2 billion acquisition of AI startup Manus.
Current Status and Next Steps
Both companies have stated they remain in close dialogue and are working constructively on the transaction. SoftBank is managing the regulatory process. Subsequent reporting indicated the parties are examining options such as carving out the China business into a separate entity with different ownership structures, while ABB is also evaluating alternative buyers for parts of the division.
ABB Robotics products include industrial robot arms, autonomous mobile robots, controllers such as the OmniCore platform, and solutions for manufacturing, logistics, electronics assembly and other discrete automation tasks. The unit’s technology and installed base formed a key attraction for SoftBank’s broader robotics portfolio, which already includes investments in companies such as Agile Robots, Skild AI and others.
The regulatory outcome underscores how national security reviews of foreign investment in robotics and related data-intensive technologies are shaping cross-border deals in the sector. Further updates from SoftBank or ABB will determine whether a modified structure can proceed or whether the original full acquisition is abandoned.
Sources: SoftBank Group acquisition announcement, SoftBank Group update on acquisition, ABB update on divestment of Robotics, Reuters report, Forbes coverage.
