China blocks SoftBank's ABB robotics deal

What happened to SoftBank’s ABB Robotics deal?

China blocked SoftBank’s planned acquisition of ABB’s robotics business in China, cutting off a key regulatory path for the October 8, 2025 deal that SoftBank said remained subject to regulatory approvals and other customary closing conditions. SoftBank said it received the prohibition notice on November 4, 2026, from China’s Office of the Working Mechanism for Foreign Investment Security Review, and disclosed the decision on November 6.

ABB separately confirmed that SoftBank had informed it of the prohibition, and both companies said they remained in close communication and were working constructively on the transaction after the regulatory block. Reuters reported that the proposed acquisition had not closed when the prohibition was reported, leaving the deal incomplete with respect to ABB Robotics’ China business.

Why was China able to stop the transaction?

The Chinese office that blocked the deal sits under the National Development and Reform Commission, according to Bloomberg. SoftBank said it was responsible for seeking regulatory approvals for the acquisition, and it said the transaction remained subject to those approvals when it announced the agreement last year.

The companies did not publicly explain the basis for the veto in their statements. Infobae reported that outside reporting cited concerns about the overseas transfer of robot data and its use to train AI models, but it noted that explanation was not included in ABB’s statement.

The companies said the transaction remained subject to regulatory approvals and other customary closing conditions. SoftBank also said it would promptly announce any decisions requiring disclosure, indicating no final revised structure had been announced as of November 6.

How large was the ABB Robotics deal?

The proposed transaction was described in reporting as worth about $5.4 billion; Infobae said the October 2025 agreement carried an enterprise value of $5.375 billion. SoftBank said it entered into a definitive agreement with ABB on October 8, 2025, to acquire ABB’s robotics business.

Bloomberg reported the deal was intended to expand SoftBank’s presence in physical AI and robotics, and that the block was a blow to those plans. ABB’s robotics business includes China as its largest single market, and Infobae reported that China accounts for about 30% of that business.

Can SoftBank and ABB still salvage the transaction?

Possibly, but nothing has been finalized. Bloomberg and The Japan Times reported that SoftBank and ABB were exploring a carve-out of the China portion of the business to try to preserve the broader acquisition. The Japan Times said the companies were studying whether the Chinese business could be separated out, and that SoftBank was leading the push for a solution.

Infobae reported a similar idea: creating a separate entity for the China business with different owners, while the rest of the division would be sold to SoftBank. It also said the discussions were preliminary and could end without an agreement, and that neither company had announced a change to the October 2025 deal terms.

Infobae reported that ABB operates around 30 local entities in China, with about 15,000 employees in nearly 130 cities and sales channels in almost 700, underscoring why the China slice of the business matters so much to the overall transaction. Bloomberg also reported that SoftBank and ABB were seeking a path forward after the block.

What comes next for SoftBank and ABB?

Both companies have signaled that talks are ongoing. SoftBank said it and ABB were in close dialogue and working constructively on the transaction after the prohibition, and ABB said the same in its own statement. For now, the acquisition remains unresolved, and no formal decision has been announced on separating the China business.

Infobae reported that the blocked sale affected ABB’s plans for the use of proceeds from the sale. The same report said Bloomberg reported ABB was evaluating alternatives, including selling the unit to another buyer for between $2 billion and $3 billion, or reviving its earlier plan to spin off the division and list it publicly.

Bloomberg reported the blocked deal was a blow to SoftBank’s plans to expand into physical AI. Until the companies announce a revised structure or another path to closing, the original acquisition remains incomplete.