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ABB said on Nov. 5, 2026, that SoftBank had been told China’s foreign-investment security review office prohibited the purchase of ABB’s robotics business in China. The decision’s published rationale and the effect on the wider $5.375 billion transaction remain unknown.
ABB’s statement said the review office “has prohibited the acquisition of the ABB Robotics business in China.” ABB also said SoftBank manages the regulatory approval process and that the companies are “in close dialogue and are working constructively on the transaction.” ABB did not publish a decision document from Chinese authorities.
The Financial Times reported that China’s National Development and Reform Commission informed SoftBank of the decision. The newspaper, citing people familiar with the matter, also reported that SoftBank was examining whether it could seek approval again. Those details have not been confirmed in a public statement by the Chinese government or SoftBank.
The decision was made through a foreign-investment security review, according to ABB’s account, rather than a publicly identified competition ruling. China’s foreign ministry spokesperson Guo Jiakun did not confirm or deny the report when asked at a regular briefing on Nov. 5, saying: “I would refer you to the competent Chinese authorities.”
China blocks ABB robotics deal Wider transaction unresolved
ABB says China’s foreign-investment security review office prohibited SoftBank’s purchase of ABB’s robotics business in China. The published rationale and effect on the wider deal remain unknown.
What the decision covers
ABB’s wording refers to the robotics business in China; it does not say the entire international deal is prohibited.
- China’s security review office prohibited the acquisition of ABB Robotics in China, according to ABB.
- ABB says the companies remain in close dialogue.
- Whether the wider transaction can close or the China business can be separated.
- Any revised deal terms or closing date.
Why industrial robotics matters
The review adds a national security hurdle alongside other regulatory processes.
A separate review risk
Merger clearance alone may not settle regulatory risk for industrial technology operating in China.
Robotics data
The Financial Times reported concern about data moving abroad to train foreign AI models; Chinese authorities have not publicly stated this as the reason.
How the deal reached this hurdle
A Security Review Reaches Industrial Robotics
The case puts industrial automation at the center of a cross-border security review. ABB robots are used in manufacturing, including tasks such as welding and material handling. The Financial Times reported that officials were concerned robotics data could move abroad and be used to train foreign AI models; China has not publicly stated that as its reason.
For companies pursuing acquisitions, the development shows that merger clearance alone may not resolve every regulatory risk. A transaction involving industrial technology can face a separate national security process in the country where the business operates. The practical effect for SoftBank depends on whether the Chinese business can be excluded, restructured or approved through another route, none of which ABB has confirmed.
China is a major market for industrial robots. The International Federation of Robotics counted 354,000 industrial robot installations in China in 2025, equal to 59% of the global total. That scale gives the review potential consequences for a buyer planning to combine robotics with its broader technology strategy, as well as for the seller and suppliers tied to the business.
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A Year-Long Deal Nears a New Hurdle
SoftBank agreed on Oct. 8, 2025, to acquire ABB’s robotics division at an enterprise value of $5.375 billion. The European Union cleared the transaction in March 2026. ABB said on Oct. 20 that it expected the deal to close before the end of 2026, and SoftBank had arranged financing, according to the source material.
The Chinese review concerns the ABB Robotics business in China, as described by ABB. The statement does not say the entire international transaction is prohibited. It also does not explain whether the Chinese operation could be separated from the rest of the deal or how that would affect its value and terms.
China’s foreign-investment security review is distinct from antitrust review. The source material describes the review office as operating through a mechanism associated with the NDRC and led jointly with the Ministry of Commerce. No decision text or detailed legal explanation was publicly available in the material cited when ABB announced the prohibition.
““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
The Decision’s Rationale Is Still Unknown
China has not publicly explained why it prohibited the purchase, and the source material contains no published decision text. The concern about robotics data and foreign AI training was reported by the Financial Times, not stated by Chinese officials as the official rationale.
It is also unclear whether the transaction can close without the China business, whether that operation can be carved out, or whether SoftBank can submit a revised application. ABB’s statement does not describe the status of other regulatory reviews, including a possible U.S. review, and SoftBank had not issued a public statement in the material available at publication.
The prohibition is specific in ABB’s wording to the acquisition of the robotics business “in China.” That leaves the status and structure of the wider international deal unresolved. The companies have not disclosed whether the agreement’s financial terms or expected closing date have changed.
SoftBank and ABB Face a Transaction Decision
SoftBank is managing the approval process, and ABB said the companies remain in contact. The immediate next development is likely to be clarification from one or both companies on whether they will pursue another approval route, revise the transaction, or proceed without the China business. None of those outcomes has been announced.
Investors and customers will also be looking for details on the effect of the review on the deal’s timing and scope. Until the parties or Chinese authorities provide more information, ABB’s Nov. 5 statement remains the clearest public confirmation of the prohibition, while the transaction’s broader fate is still unsettled.
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 the entire global transaction was banned.
Has SoftBank’s acquisition been canceled?
ABB did not say the deal had been canceled. It said the companies were in close dialogue and working constructively, but gave no details on a revised plan or timetable.
Why did Chinese authorities block the purchase?
Chinese authorities had not publicly given a reason in the source material. The Financial Times reported concerns about robotics data moving abroad and training foreign AI models, but that account is not an official explanation.
When was the deal expected to close?
On Oct. 20, ABB said it expected closing before the end of 2026. The Nov. 5 announcement casts that expectation into doubt; the companies have not provided a revised date.
Source: Thorsten Meyer AI
