China blocks SoftBank’s $5.4 billion ABB robotics deal, FT says

China blocks SoftBank’s $5.4 bn ABB robotics deal, FT says

Beijing’s National Development and Reform Commission (NDRC) told SoftBank on 5 November 2026 that it will not approve the Japanese group’s purchase of ABB’s robotics division. The regulator’s refusal arrives after the deal cleared a European Commission review in March and survived a Chinese competition‑law check in February, but before the United States could finish its own assessment.

ABB’s robotics arm was founded in China in 1994 and opened an R&D centre in Shanghai in 2005. Over the decades the business grew into the largest single market for the unit, accounting for more than 90 % of its demand at the time of the block. At its peak the division commanded more than 70 % of the Chinese industrial‑robot market; that share fell as domestic manufacturers lifted their own share from 47 % to 58 % in 2024, according to industry data cited in the coverage.

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The October 8 2025 agreement valued the unit at an enterprise price of $5.375 bn. It would have transferred ownership of roughly 7 000 engineers, about 500 000 installed robots worldwide and a client roster that includes BMW. SoftBank’s chief executive, Masayoshi Son, has framed the acquisition as the cornerstone of his “physical AI” vision – the melding of artificial‑intelligence software with machines that act in the real world.

Chinese officials raised “concerns about assets being exported to Japan” and specifically flagged the potential transfer of robotics‑related data that could be used to train AI models, including those built by OpenAI, in which SoftBank holds a major stake. The same line of reasoning appeared in a TradingView report that said the regulator was “concerned about sensitive robotics data being transferred overseas.”

"ABB confirms that it has been informed by SoftBank that 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 statement, 5 November 2026 via Silicon Republic

The block echoes a broader pattern of Beijing tightening control over foreign‑owned technology assets. Earlier in the year China barred state data‑centre operators from buying Nvidia chips and halted Meta’s $2 bn acquisition of the AI start‑up Manus on national‑security grounds.

From the investor side, the news hit SoftBank’s share price hard. In Tokyo morning trade the stock slipped about 5 %, while the broader Nikkei 225 fell 0.5 %. The decline coincided with an overnight slide in Arm Holdings after the chip designer issued weaker guidance, and with a wider AI‑stock sell‑off that followed the U.S. Mid‑term elections, where Democrats secured control of both chambers of Congress.

SoftBank’s exposure to the United States’ emerging AI‑regulatory focus is also notable. The group’s sizable investment in OpenAI makes it vulnerable to the heightened scrutiny that U.S. Lawmakers are promising for AI data‑centre projects. Investinglive warned that the regulatory overhang in China could keep pressure on SoftBank’s stock as the firm “tries to establish what went wrong and whether it can seek approval again.”

Beyond the ABB deal, SoftBank has been busy shoring up its robotics portfolio. Sources reported that the group is in talks to acquire Gravis Robotics, an ETH Zurich spin‑out that retrofits excavators and loaders with AI‑autonomy kits.

Regulatory timing proved uneven. The European Commission gave an unconditional sign‑off in March, yet the United States had not wrapped up its review by late October. The Chinese competition review was completed in February, but the NDRC’s foreign‑investment security assessment arrived only days before the 5 November deadline, effectively killing the transaction. The Financial Times noted that the decision “carries particular weight because it is the largest market for ABB’s robotics unit.”

ABB’s own figures illustrate the scale of what is at stake. The robotics division generated about $2.3 bn in revenue in 2024 – roughly 7 % of ABB’s total group turnover – and employed around 7 000 people worldwide. Its Chinese manufacturing hub alone hosts more than 2 000 staff and supplies automation hardware to automotive assembly lines, electronics factories and packaging plants across East Asia.

The blockage leaves the division under the direct control of ABB’s Swiss parent. The company said it will continue to operate the robotics business as an independent supplier and has not commented on any imminent restructuring. Analysts point to a possible “separation plan” that ABB may revive, given that the unit was already slated for divestiture before the SoftBank deal was announced.

SoftBank’s next moves remain opaque. The Financial Times reported that the group is “trying to figure out what exactly went wrong and whether a revised structure could get a second look.” No public roadmap has been disclosed, and the NDRC has not offered a timeline for reconsideration. Market participants will be watching for a formal response from SoftBank, any renewed filing with Chinese authorities, and whether ABB proceeds with an internal spin‑off or sale to another buyer.