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ABB said on November 5, 2026, that SoftBank had been told China’s foreign-investment security review office prohibited the acquisition of ABB’s robotics business in China. The companies say they remain in dialogue, but China has not published a decision or explained its reasoning, and the status of the deal outside China is unclear.
China has prohibited SoftBank’s acquisition of ABB’s robotics business in China, according to a November 5 statement from ABB, putting a significant part of the $5.375 billion deal in doubt. ABB said SoftBank informed it that the decision came from China’s Office of the Working Mechanism for Foreign Investment Security Review; neither the Chinese authorities nor SoftBank had published a detailed explanation by the time of the report.
ABB said the restriction concerns the acquisition of its robotics business in China. Its statement did not say that China had blocked the entire global transaction, nor did it explain whether the companies could restructure the deal or proceed with other parts of it. ABB said regulatory approvals are being managed by SoftBank and that the two companies remain in close dialogue and are working constructively on the transaction.
The purchase agreement was signed on October 8, 2025, at an enterprise value of $5.375 billion. The European Union cleared the transaction in March 2026. ABB had said as recently as October 20 that it expected the deal to close before the end of 2026. Those steps do not resolve the Chinese security review, which is distinct from competition approval.
The Financial Times reported on November 5, citing people familiar with the matter, that China’s National Development and Reform Commission informed SoftBank that the acquisition would not be allowed. The FT also reported that SoftBank was considering whether it could seek approval again. Those details have not been confirmed in a published decision by Chinese authorities or in a statement from SoftBank.
China blocks SoftBank’s ABB robotics deal in China
ABB says China prohibited the acquisition of its robotics business in China. The decision’s reasons and the deal’s final scope remain unclear.
What China prohibited
ABB’s statement describes a restriction on the proposed acquisition of its China robotics business, not a confirmed block of the entire global deal.
- China’s foreign-investment security review office prohibited the acquisition in China.
- ABB says the companies remain in dialogue and are working constructively.
- Whether the deal can proceed without the China business.
- Whether the parties will seek approval again or restructure the transaction.
Why the objection remains unexplained
Chinese authorities have not published a decision or stated their reasoning in the available reporting.
No public rationale
The security review’s specific concern has not been confirmed by Chinese authorities.
Data concerns alleged
The Financial Times reported concerns about robotics data moving abroad to train foreign AI models; this is not an official explanation.
Not competition clearance
China’s foreign-investment security review is a separate track from the EU competition clearance.
What happens next
The companies have not announced a revised structure or a new timetable.
SoftBank and ABB could explain whether the transaction can proceed without the China operations.
The parties have not said whether they will seek approval again or propose a revised transaction.
ABB had expected a year-end 2026 close, but the China decision leaves that timetable in doubt.
A China Block Reshapes the Deal
The decision puts a geographic limit on the announced transaction and leaves open whether SoftBank can acquire ABB’s robotics operations elsewhere without the China business. ABB has not described a revised structure, and the companies have not said whether they will seek a new approval. The uncertainty matters to investors and employees because the deal’s scope, closing timetable and eventual ownership arrangements could change.
It also highlights the role of national-security screening in industrial acquisitions. Robot makers supply equipment used in manufacturing, including vehicle production and logistics. A security review can raise questions beyond market competition, such as ownership, access to technology or data, and the location of business operations. In this case, however, China has not publicly identified its concern, so those possibilities should not be treated as the official rationale.
For companies planning cross-border acquisitions, the episode is a reminder that approval in one jurisdiction does not settle regulatory review elsewhere. The immediate effect on factories using ABB robots in China is also unknown: ABB’s announcement describes a restriction on the proposed acquisition, not a change to robot operations or customer service.
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How the Deal Reached Review
SoftBank agreed to buy ABB’s robotics division in October 2025, valuing the transaction at $5.375 billion. The EU’s March 2026 clearance addressed competition review in that jurisdiction. China’s process, as described by ABB, was a foreign-investment security review, a separate regulatory track rather than a merger-control decision.
ABB’s November 5 statement is the principal official account available in the supplied reporting. The company said it had been informed by SoftBank that the Chinese review office “has prohibited” the acquisition of ABB Robotics in China. The Financial Times separately reported that the NDRC conveyed the decision. China’s foreign ministry spokesperson Guo Jiakun did not confirm or deny the report when asked at a regular briefing; he referred the question to the competent Chinese authorities.
The reporting also points to the scale of China’s robotics market. The International Federation of Robotics said China installed 354,000 industrial robots in 2025, equal to 59% of installations worldwide that year. The figures help explain the market’s industrial importance, but they do not establish why regulators acted in this particular case.
““has prohibited the acquisition of the ABB Robotics business in China.””
— ABB, in its November 5, 2026 statement
The Scope and Reasons Remain Open
China has not published its decision or stated its reasons in the material available. The Financial Times reported that officials were concerned robotics data could move abroad and be used to train foreign AI models. That is a reported explanation, not a reason confirmed by Chinese authorities.
It is also unclear whether the prohibition applies only to the China business, as ABB’s wording indicates, or will prevent the overall transaction from closing in its announced form. ABB has not explained whether the parties could exclude or restructure the China operations. The supplied reporting does not establish the status of any other regulatory reviews, including a possible U.S. review, and SoftBank had not issued its own public statement when the source report was published.
SoftBank and ABB Face a New Approval Path
The next public developments are likely to come from SoftBank, ABB or the Chinese authorities: whether the buyers seek another approval, propose a revised transaction or accept that the China business cannot be included. ABB said SoftBank manages the regulatory approval process, but neither company set out a new timetable in the statement.
Until the companies clarify the transaction’s structure and China provides more information, the expected year-end closing date should be treated as uncertain. ABB’s latest statement confirms a prohibition concerning the China acquisition; it does not confirm that the global deal has been cancelled or that a revised deal has been approved.
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 deal had been prohibited.
Has the $5.375 billion deal been cancelled?
Not according to ABB’s statement. The company said the parties remain in dialogue and are working constructively. The deal’s final scope and whether it can proceed without the China business remain unclear.
Why did Chinese authorities object?
China has not publicly explained its decision in the source material. The Financial Times reported concerns about robotics data moving abroad and being used to train foreign AI models, but that account is not an official explanation.
Does the decision change operations at factories using ABB robots in China?
ABB’s announcement concerns the proposed acquisition, not a change to existing factory operations. The source material does not report any immediate change to robot service or customer arrangements.
What happens next?
SoftBank and ABB may clarify whether they will seek another approval or alter the deal’s structure. No new timetable or revised transaction terms had been announced in the source material.
Source: Thorsten Meyer AI
