China Blocks $5.4 Billion ABB-SoftBank Deal as Companies Seek to Address Impasse

Key Facts

A Chinese government agency blocked SoftBank’s acquisition of ABB’s robotics business in China, complicating a deal with a total value of $5.375 billion, the companies said on November 6, 2026. ABB said authorities had blocked the acquisition of its robotics business in the country, while SoftBank said the parties continue to discuss the deal. The Japanese company said they are working constructively and that it will promptly announce any decisions requiring disclosure. Bloomberg reported that the companies were exploring a path forward after the ban, but no official announcement confirmed a carve-out of the Chinese business or approval of a new deal structure. The decision puts Chinese regulatory approval to a direct test in a cross-border deal in the robotics sector.

According to ABB’s statement, the deal is subject to regulatory approvals and customary closing conditions, while SoftBank is managing the process of securing those approvals. The companies announced an agreement to sell the robotics division in October 2025 at an agreed enterprise value of $5.375 billion. ABB said at the time that it expected the deal to close in mid-to-late 2026, subject to approvals and agreed conditions. The company also estimated that tax-related cash flows associated with separating the local business would range from $400 million to $500 million. The estimate highlights the financial considerations tied from the outset to separating local operations from the deal, while the companies have not announced any changes to its terms following the ban.

ABB’s robotics business employs more than 7,000 people, according to coverage by The Japan Times citing Bloomberg. SoftBank was seeking to acquire the unit as part of its expansion into robotics and physical artificial intelligence, the report said. A document from the Japanese company identifies four main areas for expansion and investment: artificial intelligence chips, its robots, its data centers and energy. Reuters described SoftBank’s robotics ambitions as a key part of its artificial intelligence investment strategy and said the ban was a setback for those ambitions. The regulatory hurdle therefore affects a deal linked to one of the areas the company has listed as an expansion priority.

The ban on the ABB deal followed another instance of Chinese intervention in an investment in the advanced technology sector: Reuters reported that China ordered Meta to unwind its acquisition of artificial intelligence company Manus in April 2026, a deal valued at more than $2 billion. The report said the ABB deal was the second major deal China had blocked this year. In a market reaction, SoftBank shares fell about 7% in Tokyo on Thursday, November 5, according to Bloomberg as cited by The Japan Times. At the November 6 close, SoftBank’s over-the-counter-listed shares stood at $11.47, while ABB shares listed on the New York Stock Exchange closed at $81.28, according to EL7 data. These prices came a day after SoftBank’s decline in Tokyo and do not on their own measure the change in either stock during the November 6 session.

SoftBank said in its statement that it is in "close dialogue" with ABB and that the parties are "working constructively on the transaction," adding that it would promptly announce any decisions requiring disclosure. ABB also confirmed that work on the deal is continuing and that SoftBank is managing the approval process. Neither company confirmed in its disclosures that a carve-out of the Chinese business had been adopted or that an alternative closing date had been set. The expected timing when the agreement was announced was mid-to-late 2026, with closing subject to regulatory approvals and customary closing conditions. SoftBank is expected to promptly announce any decision requiring disclosure, while completion of the deal remains dependent on the approval process and announced conditions.