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ABB said on November 5 that SoftBank had informed it that China’s foreign investment security review office prohibited the acquisition of ABB’s robotics business in China. The global transaction has not been called off, but ABB has not explained whether it can proceed without the China business, and China has not published a reason for the decision.
ABB said on November 5 that SoftBank had informed it that China’s foreign investment security review office prohibited the acquisition of ABB’s robotics business in China, a setback for the $5.375 billion transaction. ABB did not say the global deal was canceled, and the companies remain in contact, but the scope of any sale outside China is unresolved.
ABB’s statement said the Chinese office “has prohibited the acquisition of the ABB Robotics business in China.” It added that SoftBank manages the regulatory approval process and that the two companies are “in close dialogue and are working constructively on the transaction.” The statement did not include the Chinese decision itself or an explanation for it.
The Financial Times reported that China’s National Development and Reform Commission informed SoftBank of the decision. The paper also reported that Chinese officials were concerned that robotics data could be transferred abroad and used to train foreign AI models. Those details have not been confirmed in a public statement by Chinese authorities; the reported concern should not be treated as an official explanation.
ABB and SoftBank agreed to the transaction on October 8, 2025, at an enterprise value of $5.375 billion. The European Union cleared the deal in March 2026. On October 20, ABB had said it expected the transaction to close in the fourth quarter. China’s prohibition changes that outlook, although ABB has not stated what happens to the remaining parts of the deal.
China’s SoftBank Decision Puts Factory Robots and AI Security in Focus
China prohibited SoftBank’s acquisition of ABB’s robotics business in China. The global transaction remains unresolved, with its scope and future still unclear.
What China’s decision means
ABB says the prohibition covers acquiring its robotics business in China; it has not said the entire global deal is canceled.
- China prohibited the acquisition of ABB’s robotics business in China.
- ABB says the companies remain in close dialogue.
- Whether the deal can proceed without the China business.
- Whether the companies will revise the deal or seek another review.
Why robotics face scrutiny
Factory robots handle manufacturing tasks and can generate operational data about factory processes.
Robotics data
The Financial Times reported concerns about data moving abroad and being used to train foreign AI models. Chinese authorities have not confirmed that explanation.
Local reviews matter
The case shows that approval in one jurisdiction does not settle a deal’s status everywhere.
Deal timeline
What remains open
The next steps depend on discussions between ABB and SoftBank and any further regulatory action.
- Whether SoftBank will seek a new review or revise the transaction.
- Whether the deal can close in other markets.
- Why Chinese authorities made the decision; no official reason has been published.
- ABB’s announcement does not describe any change to robots already operating in factories.
Robotics Deals Face Security Reviews
The decision puts industrial robotics into sharper focus as a national security issue. These systems are used in manufacturing tasks such as welding and moving goods, and they can generate operational data about factory processes. The Financial Times’ account links data concerns to the review, but China has not publicly explained its decision.
For companies buying or selling robotics businesses, the case shows that approval can depend on country-specific security reviews as well as competition rules. A merger clearance in one jurisdiction does not settle the question everywhere. The transaction’s structure, local operations and data handling may all become relevant, though the public record does not establish which factors drove this decision.
China is a major market for factory automation. The International Federation of Robotics reported that China installed 354,000 industrial robots in 2025, or 59% of the global total. That scale makes the China business significant to the transaction, but ABB has not disclosed how much of the deal’s value it represents. For factories already using ABB robots in China, the announcement does not itself indicate an operational change.
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A Deal Awaiting Global Approvals
SoftBank’s planned purchase is part of its stated push into physical AI and robotics. ABB, a Swiss-Swedish engineering group, agreed to sell its robotics division in October 2025. The transaction then proceeded through separate regulatory processes, including EU merger review, before ABB’s October 2026 expectation of a fourth-quarter closing.
China’s action came through its foreign investment security review, according to ABB’s description. That process is distinct from competition review, which examines effects on market competition. The distinction matters: the publicly stated decision concerns whether the China business may be acquired under a security review, not whether the transaction would reduce competition.
At a regular Chinese foreign ministry briefing on November 5, AFP asked about the reported block. Spokesperson Guo Jiakun replied, “I would refer you to the competent Chinese authorities.” The response neither confirmed nor denied the report.
““has prohibited the acquisition of the ABB Robotics business in China.””
— ABB, in its November 5 statement
The Deal’s Remaining Scope
China has not published the decision text or its official reasoning. ABB’s statement describes a prohibition covering the robotics business “in China,” but does not clarify whether SoftBank could proceed with a revised transaction that excludes or otherwise addresses that business.
It is also unclear whether the deal can close in other markets, whether SoftBank can seek approval again, or whether additional regulatory reviews remain. The Financial Times reported that SoftBank was examining whether it could reapply, but neither ABB nor SoftBank had publicly confirmed that course in the material available on November 5. SoftBank had not issued a public statement at that time.
SoftBank’s Response and Deal Path
The next developments will depend on what SoftBank and ABB decide after discussions with regulators. SoftBank manages the approval process, according to ABB, so a further statement from the buyer could clarify whether it plans to challenge the outcome, seek a new review or revise the transaction.
ABB has said the companies are working constructively, but has not announced a new closing date or a revised deal structure. Until they provide those details or Chinese authorities publish their decision, the transaction’s status outside China and its ultimate outcome remain open.
Key Questions
What did China prohibit?
ABB said SoftBank informed it that China’s foreign investment security review office prohibited the acquisition of ABB’s robotics business in China. ABB did not say that the entire global transaction was prohibited.
Has SoftBank’s deal with ABB been canceled?
ABB has not said the deal is canceled. It said the companies remain in close dialogue, but it has not explained whether the transaction can proceed without the China business.
Why did China block the acquisition?
Chinese authorities have not published a reason. The Financial Times reported concerns about robotics data moving abroad and being used to train foreign AI models; that remains a reported explanation, not an officially confirmed one.
Does the decision affect factories already using ABB robots in China?
ABB’s announcement concerns the proposed acquisition. It does not describe a change to the operation of robots already installed in factories, and no such change was announced in the source material.
Source: Thorsten Meyer AI
