Key points
- China has blocked SoftBank's $5.4bn acquisition of ABB's robotics business, ABB said on Thursday, after China's foreign-investment security review office prohibited the purchase of the robotics business in China.
- The deal was agreed in October 2025 at an enterprise value of $5.375bn, according to the Wall Street Journal; the Financial Times first reported the block, and ABB confirmed it had been told of the decision by SoftBank.
- Regulators were concerned that robotics data gathered in China could be transferred overseas and used to train artificial-intelligence models, including those developed by OpenAI, in which SoftBank is a major investor, the Financial Times reported, via Reuters.
- It is the second major deal China has blocked this year, Reuters reports, after Meta was ordered to unwind its acquisition of artificial-intelligence startup Manus, valued at more than $2bn.
- SoftBank shares ended Thursday down 6.8% in Tokyo, Reuters reports; ABB said the two companies remain in close dialogue and are "working constructively on the transaction".
China has blocked SoftBank's $5.4bn purchase of ABB's robotics business, in a decision that lands as the second major takeover Beijing has stopped this year. ABB said on Thursday, 5 November, that it had been informed by SoftBank that China's Office of the Working Mechanism for Foreign Investment Security Review had prohibited the acquisition of the ABB Robotics business in the country. The Financial Times first reported the block, and the Swiss-Swedish engineering group confirmed it in a statement reported by Reuters and the Wall Street Journal.
SoftBank, the Japanese investor, had agreed in October 2025 to buy the robotics division as its chief executive, Masayoshi Son, sought to make SoftBank a core player in the development of artificial intelligence. The division employs more than 7,000 people and supplies robotic arms and industrial machinery to manufacturers including BMW, according to the Financial Times, via The Business Times. Reuters reports that the deal restrains Son's ambitions in robotics, which he has billed as a core component of SoftBank's AI investment strategy.
The key figures
| Measure | Figure | Source |
|---|---|---|
| Agreed purchase price | $5.4bn; enterprise value $5.375bn | Reuters; Wall Street Journal |
| ABB robotics employees | More than 7,000 | Financial Times |
| SoftBank shares on Thursday | Down 6.8% in Tokyo | Reuters |
| China's share of ABB's robot-related business | About 30% | Reuters, citing ABB |
| ABB employees in China | About 15,000, across about 30 local companies | Reuters, citing ABB |
| Deal agreed | October 2025 | Reuters; Wall Street Journal |
| Earlier blocked deal this year | Meta ordered to unwind Manus acquisition, valued at more than $2bn | Reuters |
What worried Beijing
The National Development and Reform Commission, China's state planner, reviews foreign investment that might have national security implications, Reuters reports. The Financial Times reported that the commission was concerned about robotics data being transferred overseas, where it could be used to train AI models, including those developed by OpenAI, in which SoftBank is a major investor. SoftBank declined to comment, and China's NDRC did not immediately respond to a request for comment, Reuters reports.
The stakes for ABB are high: China is its biggest robotics market, representing around 30% of its robot-related business, Reuters reports, citing the company. ABB operates about 30 local companies in China with around 15,000 employees in nearly 130 cities, and its ABB Engineering site in Shanghai is home to its global robotics headquarters and an important research-and-development centre and production base, according to the company.
Reuters also notes the decision comes against a backdrop of strained relations between Beijing and Tokyo, after comments by Japanese Prime Minister Sanae Takaichi on Taiwan prompted China to severely limit exports of critical minerals to Japan.
What happens next
ABB said the two companies are in close dialogue and are "working constructively on the transaction", but neither company has said what form any revised deal could take. Finimize reports that regulators are weighing conditions that would keep some intellectual property inside China, potentially by forcing a sale of certain assets to Chinese owners. Europe Unfolded will report any revised terms, and any formal response from Beijing, as they are confirmed.
Updates & corrections
Published 5 November 2026.
No updates or corrections have been made to this article since publication.
Sources
- Reuters, "China blocks SoftBank's $5.4 billion takeover of ABB's robotics division", 5 November 2026, via Duke FM, on the NDRC prohibition, the Financial Times first reporting the block, the concern over robotics data being used to train AI models including OpenAI's, the Meta/Manus comparison, the 6.8% fall in SoftBank shares, China's roughly 30% share of ABB's robot-related business, the roughly 15,000 ABB employees in China, and the strained China-Japan backdrop: duke.fm
- The Wall Street Journal, "ABB Confirms China Blocked SoftBank Deal for Robotics Unit", 5 November 2026, via Morningstar (Dow Jones), on ABB's confirmation that Chinese regulators blocked the acquisition of its robotics business in China, the $5.375bn enterprise value, the agreement in October last year, and SoftBank declining to comment: morningstar.com
- The Business Times, "China regulator blocks SoftBank acquisition of ABB robot unit: FT", 5 November 2026, on the Financial Times report, the NDRC's opposition to the deal, and the robotics division's more than 7,000 employees and its customers including BMW: businesstimes.com.sg
- Finimize, "China Put SoftBank's ABB Robotics Deal On Ice", 5 November 2026, on regulators weighing conditions to keep intellectual property in China, potentially by forcing a sale of certain assets to Chinese owners: finimize.com