China Blocks SoftBank’s Acquisition of ABB’s Robotics Division
By Greg Bock · · 3 min read
Insider Brief
- China has blocked SoftBank Group’s proposed acquisition of ABB Robotics’ operations in China, creating a regulatory obstacle for the companies’ planned $5.4 billion transaction.
- ABB said SoftBank is managing the regulatory approval process and both companies remain in discussions, while China accounts for approximately 30% of ABB’s robotics business, according to Reuters.
- The decision affects a major robotics operation that includes ABB’s $150 million Shanghai factory and follows China’s intervention in Meta’s proposed $2 billion acquisition of AI startup Manus earlier this year.
China has blocked SoftBank Group’s proposed acquisition of ABB’s robotics business in the country, creating a regulatory obstacle for the companies’ planned $5.4 billion transaction.
According to ABB, it was informed by SoftBank that China’s Office of the Working Mechanism for Foreign Investment Security Review had prohibited the acquisition of ABB Robotics‘ operations in China.
The Swiss technology company said SoftBank is managing the regulatory approval process and that both companies remain in close discussions over the transaction.
ABB agreed in October 2025 to sell its Robotics division to Japan’s SoftBank Group for an enterprise value of $5.375 billion, abandoning an earlier plan to spin off the business as a separately listed company. The companies initially expected the transaction to close in mid-to-late 2026, subject to regulatory approvals and customary closing conditions.
SoftBank sought to combine ABB’s industrial robotics technology and manufacturing expertise with its capabilities in artificial intelligence, robotics and next-generation computing. At the time, SoftBank Chairman and CEO Masayoshi Son identified physical AI as a major focus for the company, with plans to bring together advanced AI systems and robotics technology.
ABB has an extensive robotics manufacturing and research presence in China. ABB employs more than 15,000 people across 130 cities in China, one of its major research and manufacturing centers. In December 2022, the company opened a $150 million robotics factory in Shanghai, a 67,000-square-meter facility that includes an 8,000-square-meter research and development center focused on AI, machine vision, autonomous mobility and robotics software.
ABB also identifies Shanghai as the global headquarters of its robotics business and a major production center. In southern China, ABB Robotics Zhuhai, established in 2015, provides robot application development, systems integration and customer service across six provinces, serving industries including automotive, electronics and consumer appliances.
ABB Robotics develops industrial automation systems and employs approximately 7,000 people. The division generated $2.3 billion in revenue in 2024, accounting for about 7% of ABB Group revenue, with an operational EBITA margin of 12.1%.
Under the original agreement, ABB expected to receive approximately $5.3 billion in cash proceeds after transaction costs and record a non-operating pre-tax book gain of about $2.4 billion upon closing. The company also projected separation costs of approximately $200 million and transaction-related cash tax outflows of $400 million to $500 million.
In April, the country’s National Development and Reform Commission ordered Meta and AI agent startup Manus to unwind their $2 billion acquisition deal. Manus, which was founded in Beijing before relocating to Singapore in 2025, had agreed to be acquired by Meta in December 2025. Chinese authorities provided no explanation for the decision.
