China blocks SoftBank’s purchase of ABB’s Chinese robotics operations

China has prohibited SoftBank from acquiring ABB Robotics’ operations in the country, placing a major obstacle in the companies’ $5.375 billion transaction. The decision reaches a substantial part of the industrial robot business SoftBank wants to combine with its AI capabilities. ABB says the companies remain in close discussions, with SoftBank handling regulatory approvals.

A local prohibition in a global transaction

ABB said SoftBank informed it that China’s Office of the Working Mechanism for Foreign Investment Security Review had prohibited the acquisition of ABB Robotics’ Chinese operations. That is the scope of the decision disclosed by ABB; the wider sale has not been announced as terminated.

The agreement dates to October 2025, when ABB chose to sell its Robotics division to Japan’s SoftBank rather than pursue an earlier plan to list the business separately. The companies initially expected to close in mid-to-late 2026, subject to regulatory approvals and customary closing conditions.

SoftBank’s stated goal was to bring ABB’s industrial robotics technology and manufacturing expertise together with its AI, robotics and next-generation computing capabilities. Chairman and CEO Masayoshi Son identified physical AI—the combination of advanced AI systems and robotics—as a major focus when the agreement was reached.

Approximately 30%China’s share of ABB’s robotics business

China accounts for approximately 30% of ABB’s robotics business, according to Reuters, as cited by The AI Insider.

$2.3 billionRobotics division revenue in 2024

ABB Robotics generated $2.3 billion in 2024 revenue, accounting for about 7% of ABB Group revenue.

Shanghai combines production and AI research

ABB’s Chinese robotics presence includes both manufacturing and research. Shanghai is the global headquarters of its robotics business and a major production center. In December 2022, ABB opened a $150 million robotics factory there, spanning 67,000 square meters.

The factory includes an 8,000-square-meter research and development center. Its work covers AI, machine vision, autonomous mobility and robotics software. Those activities put AI development alongside the industrial production expertise that SoftBank cited as a reason for buying the division.

The footprint extends beyond Shanghai. ABB Robotics Zhuhai, established in 2015, develops robot applications, integrates systems and provides customer service across six southern Chinese provinces. It serves industries including automotive manufacturing, electronics and consumer appliances.

Across the division, ABB Robotics employs approximately 7,000 people and develops industrial automation systems. Its reported operational EBITA margin was 12.1% in 2024, a profitability measure before interest, taxes and amortization. These figures describe the division as a whole, not just the Chinese operations covered by the prohibition.

ABB’s sale economics depend on closing

The $5.375 billion headline figure is the enterprise value agreed for the Robotics division. Under the original agreement, ABB expected approximately $5.3 billion in cash proceeds after transaction costs. It also expected to record a non-operating, pre-tax book gain of about $2.4 billion upon closing.

Those expected proceeds came alongside substantial costs of separating and selling the business. ABB projected approximately $200 million in separation costs and transaction-related cash tax outflows of $400 million to $500 million. Those were projections under the original sale agreement, rather than newly disclosed financial effects of China’s decision.