China blocks ABB’s sale of its robotics division to SoftBank
Keystone-SDA
The planned sale of Swiss technology company ABB’s robotics division to the Japanese technology group SoftBank has stalled.
The Chinese authorities have blocked the takeover of the business in China, the ABB announced on Thursday. This puts the multi-billion transaction in jeopardy.
In October 2025, ABB had agreed to sell the division to SoftBank for an enterprise value of around $5.4 billion. ABB stated that the Chinese authority responsible for security reviews of foreign investments had now blocked the takeover of the China business.
However, both companies remain in close contact and are working constructively on the transaction.
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When asked by the AWP news agency, ABB declined to comment further at this stage on the possible consequences for the sale as a whole and the next steps.
Concerns over robotics data
According to a report in the Financial Times on Thursday, the background to this includes, amongst other things, security concerns on the part of China. The authorities reportedly feared that data from robotics production could find its way abroad and be used there to train AI models.
This could potentially include models from OpenAI, in which SoftBank holds a significant stake.
Furthermore, the authorities had examined whether intellectual property must remain in China. The newspaper reports, citing informed sources, that a spin-off of parts of the business to Chinese owners had also been considered.
The report stated that the decision came as a surprise to SoftBank. As recently as last week, the group had assumed that approval would be granted. It is now assessing whether a fresh attempt is possible.
China is the largest market for ABB’s robotics division. More than 90% of the robots destined for Chinese customers are manufactured locally. ABB has been operating a robot factory in Shanghai since 2022, built at a cost of $150 million.
ABB banking on Rotork
The planned sale is part of ABB’s corporate restructuring. Originally, an initial public offering (IPO) of the robotics division had been envisaged.
However, SoftBank’s offer was deemed more attractive. The European Commission had already approved the takeover.
ABB had previously anticipated net proceeds of around $5.3 billion. The funds were to be used, amongst other things, for acquisitions.
ABB recently announced the purchase of the British automation specialist Rotork for $5.5 billion. Group CEO Morten Wierod had also referred to the expected proceeds from the robotics sale.
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Translated from German, reviewed by an English Department journalist.
