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ABB said on Nov. 5 that China’s foreign-investment security review office prohibited SoftBank’s acquisition of ABB’s robotics business in China. The announcement does not say the global deal has been terminated, and China has not published its reasoning or decision text.
China has prohibited SoftBank from acquiring ABB’s robotics business in China, ABB said Nov. 5, putting a security barrier in the way of a $5.375 billion transaction agreed last year. ABB’s statement describes a ban on the China business, but does not say the entire global deal has been called off; China has not published its decision or an official explanation.
ABB said SoftBank informed it that China’s Office of the Working Mechanism for Foreign Investment Security Review had prohibited the acquisition of the ABB Robotics business in China. ABB also said the approval process is managed by SoftBank and that the companies remain “in close dialogue” and are “working constructively on the transaction.”
The deal was signed on Oct. 8, 2025, at an enterprise value of $5.375 billion. The European Union cleared it in March 2026. ABB said as recently as Oct. 20 that it expected the transaction to close before the end of 2026. The new statement did not provide a revised timetable or spell out how the prohibition affects the transaction outside China.
The Financial Times reported on Nov. 5, citing people familiar with the matter, that the National Development and Reform Commission had told SoftBank it would not allow the acquisition. It also reported that SoftBank was examining whether it could seek approval again. Those details have not been confirmed in a published Chinese decision or by a public statement from SoftBank. ABB’s statement attributes the information to what SoftBank told it.
A Robot Deal Meets a Security Barrier China’s decision leaves the global transaction unclear
China prohibited SoftBank’s acquisition of ABB Robotics in China. ABB has not said the entire global deal is canceled, and China has not published its reasoning.
What the decision says—and doesn’t
ABB’s announcement addresses the China acquisition; the wider transaction’s status remains unresolved.
- China prohibited the acquisition of ABB Robotics in China.
- ABB says the companies remain in close dialogue and are working on the transaction.
- Whether the prohibition affects the global deal beyond China.
- China’s reasons, any new timetable, and SoftBank’s next step.
A separate security review
Competition clearance in one jurisdiction does not settle national security scrutiny in another.
ABB and SoftBank signed the transaction in October 2025.
The European Union cleared the deal in March 2026.
ABB announced the China decision on November 5, 2026.
Why manufacturers should pay attention
Industrial robots are central to production, but the decision’s stated rationale is not public.
Approvals can diverge
A deal cleared on competition grounds may still face a separate security review.
Scope matters
ABB has not explained whether the China prohibition changes the wider transaction.
No immediate change reported
ABB described an ownership decision, not a change to factory operations or customer service.
Security Review Reaches Factory Robots
The decision shows that a cross-border acquisition involving industrial robots can face a national security review distinct from competition approval. The case matters to companies planning deals in manufacturing technology: clearing antitrust review in one jurisdiction does not resolve security scrutiny in another.
Robots are central to production lines, including welding, handling and packaging. The International Federation of Robotics said China installed 354,000 industrial robots in 2025, accounting for 59% of worldwide installations that year. The scale helps explain why control of robotics technology and industrial data could draw government attention, though China has not said that either was the reason for this decision.
For SoftBank, the block complicates its stated push into “Physical AI,” the combination of artificial intelligence with machines and robotics. For customers already using ABB robots in China, ABB’s announcement does not describe an immediate operational change. The clearest effect for now is on the ownership deal and the uncertainty around its scope.
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A Deal Awaiting Its Final Approvals
ABB, a Swiss-Swedish engineering group, agreed to sell its robotics division to Japan’s SoftBank in October 2025. The agreed enterprise value was $5.375 billion. The transaction still required regulatory approvals, with SoftBank responsible for managing that process, according to ABB.
The European Union approved the deal in March 2026, and ABB expected a year-end closing as of Oct. 20. China’s review is a separate process from merger control. The source material identifies the foreign-investment security review office as operating under a mechanism associated with the NDRC and the Ministry of Commerce; no detailed Chinese notice was made public alongside ABB’s announcement.
On Nov. 5, an AFP reporter asked China’s foreign ministry about the Financial Times report. Spokesperson Guo Jiakun did not confirm or deny it, saying the reporter should contact the “competent Chinese authorities.” That response left ABB’s statement as the main public confirmation of the prohibition.
““has prohibited the acquisition of the ABB Robotics business in China.””
— ABB
The Deal’s China Scope Is Unclear
China has not released the decision text or its reasons. ABB has not said whether the prohibition covers only the Chinese business, prevents the entire transaction from proceeding, or could be addressed through a revised structure. Its statement specifically refers to the acquisition of the robotics business “in China,” but does not explain the implications for other parts of ABB Robotics.
SoftBank had not issued a public statement in the source material. The Financial Times reported that the company was exploring whether it could seek approval again, but that remains a report rather than a confirmed plan. The status of any other required regulatory reviews, including a possible U.S. review, was also not clarified. China’s alleged concerns about data and AI training likewise remain unconfirmed.
SoftBank Must Clarify Its Options
The next concrete developments are likely to come from SoftBank and ABB: whether SoftBank will seek another review, propose changes to the deal, or proceed with a revised transaction that excludes or treats the China business differently. Neither company disclosed a new deadline or a specific next step in the available statements.
Further clarification could also come from Chinese authorities if they publish a decision or explain the security review. Until then, the transaction’s closing prospects and timetable remain uncertain. ABB’s latest public position is that discussions continue, while the prohibition on the China acquisition stands.
Key Questions
What did China prohibit?
ABB said China’s foreign-investment security review office prohibited SoftBank’s acquisition of ABB Robotics in China. ABB did not say that China had formally prohibited every part of the global transaction.
Has the $5.375 billion deal been canceled?
ABB has not said the deal is canceled. It said the companies remain in close dialogue and are working on the transaction, but the effect of the China prohibition on the wider deal is unclear.
Why did China block the acquisition?
China has not published its reasoning. The Financial Times reported that officials were concerned robotics data could move abroad and help train foreign AI models, but that account has not been confirmed by Chinese authorities.
What happens to factories already using ABB robots in China?
ABB’s announcement described an ownership and regulatory decision, not a change to robot operations or customer service. It did not report an immediate operational impact for factories using ABB equipment.
Could SoftBank seek approval again?
The Financial Times reported that SoftBank was examining whether it could reapply, but SoftBank had not publicly confirmed that plan in the source material. No timetable or revised application has been announced.
Source: Thorsten Meyer AI
