SoftBank’s proposed $5.4B acquisition of ABB Robotics blocked by China

China, through the Office of the Working Mechanism for Foreign Investment Security Review, has blocked SoftBank Group's planned $5.4 billion acquisition of ABB's Robotics division.

The announcement, first reported by The Financial Times, stems from reported concerns from the Chinese government regarding foreign technology investment and implementation in the country.

ABB, SoftBank are working to resolve the transaction

The Financial Times reported that SoftBank was informed by China’s National Development and Reform Commission that the deal would be blocked.

ABB Group announced its intentions to divest its Robotics division to SoftBank Group for $5.375B in October 2025. At the time of that announcement, the companies said “the transaction is subject to regulatory approvals and further customary closing conditions and is expected to close in mid-to-late 2026.”

As of early November 2026, the acquisition has not been finalized.

ABB Group released the following statement regarding the news:

“In October 2025, ABB announced that it had signed an agreement to divest its Robotics division to SoftBank Group Corp. (SoftBank) for an enterprise value of $5.375 billion.

The transaction is subject to regulatory approvals and customary closing conditions. The process to obtain the regulatory approvals is managed by SoftBank. ABB confirms that it has been informed by SoftBank that 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 and SoftBank are in close dialogue and are working constructively on the transaction.”

ABB and SoftBank both declined to comment further on the news.

"China is critical to ABB Robotics’ global business," said Samantha Mou, senior analyst at global market intelligence firm Interact Analysis. "China accounts for around 50% of ABB’s global industrial robot shipments, with thousands of employees and a mega-factory in Shanghai which opened in 2022, supporting both domestic and global production. An acquisition excluding China would therefore significantly undermine the value of the proposed $5.4 billion deal. Data security is likely a key concern behind the deal’s blockage. As one of China’s top three industrial robot suppliers by revenue, ABB serves major automotive OEMs and electronics manufacturers, giving its robots access to sensitive production processes and client data across key industries. Concerns may be amplified by SoftBank’s broader AI ambitions, including its investment in OpenAI, as well as heightened China-Japan diplomatic tensions since 2025."

The New York Times reported that China is ABB’s largest robotics market and roughly 90% of its machines built for Chinese customers are manufactured within the country. The Times said that ABB currently employs thousands of people in China.

"Geopolitical tensions are tightening scrutiny of technology M&A," Mou added. "Governments are increasingly prioritizing national security and technological sovereignty in cross-border deals, particularly in advanced manufacturing. Recent examples include Japan’s blocking of South Korea-based MBK Partners’ acquisition of machine tool maker Makino in April 2026. The US also has a long-established CFIUS (Committee on Foreign Investment in the United States) mechanism for screening foreign investments with potential national security implications."