China Blocks SoftBank’s $5.4 Billion Purchase of ABB’s Robotics Unit

China’s foreign-investment security review office has blocked SoftBank Group from buying ABB’s robotics business in China, Swiss engineering firm ABB said, putting the $5.4 billion sale at risk.

SoftBank agreed in October 2025 to buy ABB Robotics for an enterprise value of $5.375 billion. SoftBank manages the regulatory filings. ABB said SoftBank told it 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 said the two companies “are in close dialogue and are working constructively on the transaction.”

Biggest market for ABB robots

China is ABB’s largest market for robots, about 30% of the unit’s business, the Financial Times reported, citing people familiar with the matter. Reuters said SoftBank had expected approval until last week.

The FT reported that Chinese officials were concerned that robotics data could be moved out of the country. SoftBank shares were already down about 5% in Tokyo before the report and changed little afterward, Reuters said.

SoftBank and ABB did not immediately reply to Reuters’ requests for comment, and China’s National Development and Reform Commission could not be reached, Reuters reported.

Developing: ABB and SoftBank have not said whether they will restructure the deal, seek a new review or walk away from the China portion.

Sources: ABB, Financial Times, Reuters.