China blocks SoftBank’s $5.4B ABB robotics deal in China, talks go on

SoftBank Group said on November 6 that China has prohibited its planned purchase of ABB’s robotics business in China. In its official update, SoftBank says it was notified on November 4 and is still working with ABB on the deal.

What SoftBank confirmed and what it left out

The notice is short. SoftBank recalls that it signed a definitive agreement with ABB on October 8, 2025, and that closing depends on regulatory approvals and other customary conditions. It says it manages the approval process itself.

The new fact is the Chinese decision. According to SoftBank, on November 4, 2026 it was notified by the Office of the Working Mechanism for Foreign Investment Security Review in China that the body had prohibited the acquisition of ABB’s robotics business in China. The company adds that it is “in close dialogue with ABB” and that both parties are “working constructively on the transaction.” It promises to announce promptly any decision that requires disclosure.

The release does not give a reason for the ruling. It also does not say whether the prohibition covers only the Chinese part of the business or blocks the whole transaction, whether SoftBank can appeal, or whether the price or structure will change. It gives no new closing date.

ABB, according to Robotics 24/7, said it had been informed by SoftBank of the prohibition and that the approval process is managed by SoftBank. It used the same “close dialogue” wording. The Financial Times reported, as cited by that outlet, that China’s National Development and Reform Commission told SoftBank the deal would be blocked. That report is not confirmed in SoftBank’s own release.

The deal as agreed in October 2025

In its original announcement, SoftBank agreed to pay $5.375 billion, with adjustments for net working capital and net debt at closing. ABB would first move the robotics business into a new Zürich-based holding company, and SoftBank would buy 100% of its shares through a subsidiary.

The unit had pro forma, unaudited FY2024 revenue of $2,279 million, according to figures from ABB, and about 7,000 employees. Closing was planned for mid-to-late 2026, with approvals needed in the EU, China and the US. SoftBank has not said in the new release whether the EU and US approvals have come through.

Why China matters to a Physical AI plan

SoftBank framed the purchase as a step toward artificial super intelligence. Chairman and CEO Masayoshi Son said then: “SoftBank’s next frontier is Physical AI.” ABB’s brand, sales channels and customer relationships were meant to join SoftBank’s existing robotics holdings, among them SoftBank Robotics, Berkshire Grey, AutoStore, Agile Robots and Skild AI.

China is the sensitive part of that plan. According to the New York Times, as cited by Robotics 24/7, China is ABB’s largest robotics market, and roughly 90% of the machines built for Chinese customers are manufactured in China, with thousands of ABB staff there. A prohibition limited to China would therefore touch the unit’s biggest customer base and local factories, even if the rest of the transaction could proceed.

The ruling also lands while SoftBank is spreading capital across several AI bets. We reported in October that Son reportedly plans $50 billion for Malaysian AI and data centers. Compared with that, the ABB deal is small in dollars, but it is SoftBank’s route to an established robot maker with factories, service networks and customers, not just stakes in startups.

The decision also fits a wider pattern in which governments treat AI-linked technology and its data as a security matter. Our explainer on sovereign AI describes why countries want control over their own AI capacity. SoftBank’s notice does not say what concerns China raised, so any link to robotics data or AI is speculation. One trade report suggested national-security concerns, but we could not verify that in an official document.

What happens next is open

For ABB customers and staff, nothing changes today: the deal had not closed, and the robotics business is still part of ABB. SoftBank’s statement gives no sign that it plans to walk away. Both companies stress that they are working on the transaction, which could mean a restructured deal, a carve-out of the Chinese operations or a long negotiation. None of these is confirmed in the sources we read.

The one commitment on the record is SoftBank’s promise to disclose decisions promptly. Until it does, the mid-to-late 2026 closing target from October 2025 looks out of reach, although neither company has formally revised it.