China has prohibited SoftBank's purchase of ABB's robotics business in the country, ABB said Thursday, complicating a $5.375 billion deal whose broader status remains under discussion.
ABB said SoftBank had informed it that China's Office of the Working Mechanism for Foreign Investment Security Review prohibited the acquisition in China. ABB said the companies remain in dialogue and are continuing work on the transaction.
SoftBank agreed in October 2025 to acquire the business by purchasing all shares in a newly created holding company. Its announcement said the deal was subject to customary approvals, including regulatory approvals in China, the European Union and the United States, and projected completion in mid-to-late 2026. SoftBank described the purchase as part of its expansion into AI robotics.
The Financial Times reported, citing people familiar with the matter, that Chinese authorities would block the full sale. The newspaper said officials were concerned that robotics data could leave China and be used to develop AI models, including those made by OpenAI. ABB did not give a reason for the prohibition.
The Financial Times also described China as ABB Robotics' largest market, reporting that more than 90% of robots sold to Chinese customers were made there and that the business employed about 12,700 people in the country. SoftBank's announcement put the division's 2024 revenue at $2.279 billion and EBITDA at $313 million, based on ABB-provided, pro forma, unaudited figures.
