China has blocked SoftBank Group Corp.’s $5.4 billion acquisition of the robotics division of ABB Ltd., citing concerns over the transfer of sensitive data and technology. The decision, delivered by the National Development and Reform Commission (NDRC), halts a deal that was intended to be a cornerstone of Masayoshi Son’s strategy to pivot the Japanese conglomerate toward physical artificial intelligence.
The transaction, which was signed on October 8, 2025, and valued the unit at an enterprise value of $5.375 billion, had already cleared Chinese competition law reviews in February 2026. However, it subsequently became subject to a foreign investment security review by the state planner. ABB confirmed the rejection in an emailed statement on Thursday, noting that it remains in close dialogue with SoftBank regarding the transaction. The Swiss company had previously abandoned plans to spin off the business as a separately listed entity in favor of the SoftBank sale.
Regulators Block Deal over Artificial Intelligence Data Fears
According to reports, regulators flagged potential risks associated with the transfer of robotics-related data, fearing it could be repurposed to train advanced AI models, including those developed by OpenAI, in which SoftBank holds a significant stake. The Chinese Office of the Working Mechanism for Foreign Investment Security Review prohibited the deal, citing concerns that robotics data might be transferred overseas.
China has blocked SoftBank's planned acquisition of ABB's robotics division, a deal valued at approximately $5.4 billion. Why it matters: Robotics is becoming strategically important, and international investment in advanced industrial technology faces growing geopolitical… pic.twitter.com/pUma836stD
The blocked deal represents a notable disruption for SoftBank’s “physical AI” vision. The company had planned to integrate ABB’s robotics expertise—which includes a workforce of over 7,000 employees and a vast portfolio of industrial machinery—into its broader AI ecosystem. This ambition was a core component of Son’s investment strategy, which has also included pledges of hundreds of billions of dollars for data center construction.
ABB Robotics lacks the cutting-edge innovation found across SoftBank’s physical AI startup portfolio, but its domain expertise and manufacturing knowhow had been expected to transform robotic concepts into actual businesses,
Kirk Boodry, Bloomberg Intelligence analyst
Impact on ABB’s Chinese Operations
For ABB, China remains its largest market for industrial robotics, accounting for approximately 30% of its business in the sector. The group operates around 30 local companies in China with roughly 15,000 employees located in nearly 130 cities. This includes a $150 million robotics factory in Shanghai. ABB Robotics Zhuhai, established in 2015, provides systems integration and customer service across six provinces, supporting industries such as automotive and electronics.
China has blocked the China part of SoftBank's $5.4 billion purchase of ABB's robot business. ABB, the Swiss engineering company, said today that SoftBank told it China's foreign investment security review office has stopped the purchase of ABB Robotics in China for now. ABB…
The rejection is the second major instance this year of Beijing blocking a high-profile technology acquisition. In April, the NDRC ordered Meta Platforms to unwind its $2 billion purchase of the agentic AI startup Manus, issuing a one-line notice stating the investment violated laws and regulations.
SoftBank Shares Plunge Following Blocked Acquisition
SoftBank shares fell roughly 7% in Tokyo on Thursday following the announcement. The ABB deal had been viewed by some as a stabilizing contribution to the company’s bottom line. The blocked acquisition occurred less than a week after the SoftBank-backed payments company OPay withdrew its U.S. initial public offering, citing an undisclosed regulatory inquiry.
The Japanese conglomerate is currently assessing the regulatory feedback to determine if a revised structure could be submitted for further review. As of Thursday, SoftBank had not provided a public plan for how it intends to proceed, and a company spokesperson declined to comment on the specific regulatory hurdles. China’s NDRC could not be reached for comment.
Earlier coverage: US Leads AI Race as China Accelerates Adoption
CHINA MOVES TO STOP SOFTBANK’S TAKEOVER OF ABB’S ROBOTICS UNIT, ACCORDING TO FT
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