China blocks SoftBank's $5.4 billion takeover of ABB's robotics division
Key Takeaways
- •China's National Development and Reform Commission declined to approve SoftBank's $5.375 billion purchase of ABB's robotics unit, a deal signed in October 2025 with SoftBank responsible for securing regulatory clearance.
- •Neither company has terminated the agreement; ABB said both sides remain in talks, while SoftBank is assessing why the deal was blocked and whether to reapply for approval.
- •The block undermines SoftBank founder Masayoshi Son's strategy of combining AI with physical robotics, as the ABB business was intended to expand the group's physical AI operations.
- •SoftBank shares dropped roughly 5% on Thursday, also pressured by a decline in Arm Holdings stock after a weaker-than-expected outlook, while the Nikkei 225 fell 0.5%.
- •The decision follows Beijing's recent pattern of blocking sensitive technology deals, including Meta's $2 billion acquisition of AI startup Manus after a security review.
Chinese regulators have rejected SoftBank Group's attempted $5.4 billion purchase of ABB's robotics division, blocking a deal that sits at the center of SoftBank founder Masayoshi Son's bet on artificial intelligence and physical automation.
In an official statement, ABB said SoftBank had been informed that Chinese regulators would not approve its acquisition of the company's robotics business in China. The deal was signed in October 2025 and valued the unit at $5.375 billion, with SoftBank responsible for securing regulatory approval.
According to the Financial Times, which first reported the decision citing several people familiar with the matter, China's National Development and Reform Commission told the Japanese conglomerate that the transaction would not go through.
Chinese sign-off was a decisive condition of the transaction: Beijing's merger-control regime gives regulators clearance authority over foreign acquisitions of businesses with substantial operations in China, and the country is by far the world's largest industrial robot market by annual installations.
Where the deal currently stands
ABB added that both companies remain in talks and will continue attempts to move the deal forward. SoftBank is also examining why China blocked the transaction and whether it can apply for approval again.
Neither company has officially called off the deal. However, China's decision has raised doubts about whether it will proceed as planned.
ABB has about 110,000 employees worldwide and is listed on the SIX Swiss Exchange and Nasdaq Stockholm. The sale was intended to let ABB focus on its electrification and automation businesses while giving SoftBank a foothold in the industrial robotics market, a field whose major players include Japan's Fanuc and Yaskawa and Germany's KUKA, the robot maker acquired by China's Midea in 2016.
A setback for Son's robotics bet
The rejection is a setback for Son's plan to bring AI and robotics together. SoftBank had hoped the ABB business would help it expand its work in physical AI. The group, which took British chip designer Arm private in a roughly $32 billion deal in 2016, has been repositioning itself around AI, and combining intelligent software with machines that operate in the physical world has become a cornerstone of that strategy.
SoftBank shares fell about 5% on Thursday, according to Yahoo Finance, while the Nikkei 225 dropped 0.5%. The stock also faced pressure from a fall in Arm Holdings shares, which came after the chipmaker issued a weaker-than-expected outlook amid investors pulling back from AI and technology stocks.
The move is not the first time China has stepped in to block a deal involving sensitive technology. Nikkei Asia noted that Beijing recently blocked Meta's $2 billion purchase of AI startup Manus after a security review.
