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ABB said on Nov. 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 statement does not say whether the broader global deal can proceed, and China has not published its decision or reason.
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, putting a regulatory obstacle in the way of SoftBank’s planned $5.375 billion purchase. ABB’s statement covers the China business; it does not say that the global transaction has been called off or explain whether it can proceed without that part.
ABB’s three-sentence statement says SoftBank informed the company that the Office of the Working Mechanism for Foreign Investment Security Review in China had prohibited the purchase in China. ABB added that SoftBank manages the regulatory approval process and that the companies remain in close dialogue and are working constructively on the transaction. The announcement relays what SoftBank told ABB; the Chinese government has not published the decision itself.
The Financial Times reported on November 5, citing people familiar with the matter, that China’s National Development and Reform Commission (NDRC) informed SoftBank of the decision. The paper also reported that officials were concerned robotics data could move abroad and be used to train foreign AI models, and that SoftBank was considering whether it could seek approval again. Those details have not been confirmed by Chinese authorities or ABB.
SoftBank and ABB signed the agreement on October 8, 2025, at an enterprise value of $5.375 billion. The European Union cleared the transaction in March 2026. As recently as October 20, ABB said it expected the deal to close in the fourth quarter of 2026. ABB has not said whether that timetable still applies or what happens to the parts of the transaction outside China.
China blocks the local deal Global outcome remains unclear
China’s foreign investment security review office prohibited SoftBank’s acquisition of ABB’s robotics business in China. ABB has not said whether the rest of the global transaction can proceed.
What China prohibited
ABB said SoftBank informed it of the decision; China has not published the decision or its reason.
- Acquisition of ABB’s robotics business in China
- Foreign investment security review
- Whether the global deal can proceed
- Whether the China business can be excluded
A deal pending since 2025
Regulatory approvals and the expected closing date now sit alongside an unresolved China review.
Why robotics matter to business
China’s market scale gives cross-border control of industrial automation strategic weight.
Large automation base
China installed 354,000 industrial robots in 2025, according to the International Federation of Robotics.
Physical AI ambitions
SoftBank describes its expansion as linking AI with machines operating in the physical world.
No reported immediate change
ABB has not reported changes to existing equipment, service or factory operations in China.
What remains unconfirmed
The reported rationale and possible next steps have not been confirmed by Chinese authorities or ABB.
- China has not published an official explanation.
- The Financial Times reported concern about robotics data moving abroad to train foreign AI models; this is not a confirmed government rationale.
- ABB says the companies remain in close dialogue, but no revised proposal or renewed approval had been announced.
A Security Review Reaches Factory Robots
The decision puts an industrial robotics acquisition under a foreign investment security review, a process distinct from merger control. That matters to companies planning cross-border deals: regulatory approval can depend on the sensitivity of technology, data and operations in each country, as well as on competition rules. In this case, the Chinese authorities have not publicly stated what prompted the prohibition.
China is a major market for industrial automation. The International Federation of Robotics reported that the country installed 354,000 industrial robots in 2025, or 59% of the global total. That market scale helps explain why access to and control of robotics businesses may have strategic importance, though it does not establish the reason for this particular decision.
For SoftBank, the setback affects a proposed expansion into what it calls Physical AI, linking artificial intelligence with machines operating in the physical world. For manufacturers already using ABB robots in China, ABB’s announcement does not report an immediate change to equipment or service. The direct effects on customers, workers and operations remain unreported.
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A Deal Pending Since 2025
SoftBank agreed to acquire ABB’s robotics division in October 2025. The proposed transaction was valued at $5.375 billion on an enterprise-value basis. The EU approved it in March 2026, and ABB was still forecasting a fourth-quarter 2026 closing on October 20.
The Chinese decision was reported as a foreign investment security review, not an antitrust ruling. ABB named the review office in its statement but did not identify the agency that communicated the outcome to SoftBank. The Financial Times attributed that communication to the NDRC. China’s foreign ministry spokesperson Guo Jiakun did not confirm or deny the report when asked about it on November 5, directing the question to the competent authorities.
““has prohibited the acquisition of the ABB Robotics business in China.””
— ABB, in its November 5 statement
The Global Deal’s Status Is Unclear
China has not released the decision text or an official explanation for the prohibition. The reported concern about robotics data and foreign AI training comes from the Financial Times and should not be treated as the government’s confirmed rationale.
ABB’s statement refers to the acquisition of its robotics business in China. It does not explain whether SoftBank can complete the rest of the global deal, restructure it to exclude China, or seek a new approval. The company has also not reported the outcome of any US review. SoftBank had not published a statement at the time described in the source material.
Regulatory Talks Will Shape the Outcome
ABB says the two companies are in close dialogue and working constructively on the transaction. SoftBank manages the approval process, so the next developments may include a response from the buyer, clarification from Chinese authorities, or a revised proposal. None had been announced in the source material.
The parties’ next public updates should clarify whether they will pursue approval again and whether the transaction can proceed without the China business. Until then, the expected fourth-quarter closing announced by ABB on October 20 should be treated as uncertain.
Key Questions
What did China prohibit?
ABB said SoftBank told it that China’s foreign investment security review office prohibited the acquisition of ABB’s robotics business in China.
Has the entire SoftBank–ABB deal been canceled?
ABB has not said the global deal is canceled. Its announcement describes a prohibition covering the China business, while the status of the rest of the transaction remains unclear.
Why did China block the acquisition?
Chinese authorities have not published a reason. The Financial Times reported that officials were concerned robotics data could move abroad and help train foreign AI models; that account is not an official explanation.
Does this change things for factories using ABB robots in China?
ABB’s announcement reports no immediate change to existing equipment, service or factory operations. It concerns the proposed ownership transaction.
When was the deal expected to close?
On October 20, ABB said it expected the deal to close in the fourth quarter of 2026. The company has not said whether that timetable still stands after the reported prohibition.
Source: Thorsten Meyer AI
