Last week, ABB confirmed that China's Office of the Working Mechanism for Foreign Investment Security Review has blocked SoftBank's acquisition of ABB Robotics' business in China. ABB said it learned of the decision from SoftBank, which is managing the regulatory approval process. The two companies "are in close dialogue and are working constructively on the transaction," ABB said.

In October 2025, ABB announced plans to sell its robotics division to SoftBank for $5.375 billion to focus on its portfolio of electrification and process automation solutions. The deal had been expected to close in mid-to-late 2026.

China is ABB's biggest robotics market, accounting for about 30% of the robotics business as of mid-2025, according to Reuters. Measured by units, its share is even larger.

"China accounts for around 50% of ABB's global industrial robot shipments, with thousands of employees and a mega-factory in Shanghai, which opened in 2022, supporting both domestic and global production," said Samantha Mou, senior analyst at Interact Analysis. "An acquisition excluding China would therefore significantly undermine the value of the proposed $5.4 billion deal."

Across all its businesses, ABB has around 30 local companies and about 15,000 employees in China, which is its second-largest market overall. About 85% of ABB's sales there come from locally made products, solutions, and services. By comparison, the robotics division has about 7,000 employees worldwide.

China has not explained its decision, but reports suggest regulators were concerned about losing manufacturing capability and about the security of robotics data.

Mou said data security is likely a key concern. As one of China's top three industrial robot suppliers by revenue, ABB serves major automotive OEMs and electronics manufacturers, "giving its robots access to sensitive production processes and client data across key industries," she said. She added that SoftBank's broader AI ambitions, including its investment in OpenAI, and heightened China-Japan diplomatic tensions since 2025 may have amplified those concerns.

The deal has not been terminated, and SoftBank is reportedly assessing whether it can reapply. For now, ABB Robotics remains part of ABB.