China's authority responsible for the security review of foreign investment has prohibited the takeover of ABB Robotics' Chinese business by SoftBank Group, the Japanese technology investment group. ABB, the Zurich-based electrical engineering and automation group, confirmed this in a statement published in Zurich on 5 November 2026. The sale of its robotics division, announced in October 2025 at an enterprise value of 5.375 billion dollars, is now in jeopardy, according to ICTjournal.
What ABB's statement says
ABB's text is brief and gives no reason. The group states that SoftBank is the one handling the approval process with regulators. It was also SoftBank that informed it of the decision by China's Working Mechanism Office for the Security Review of Foreign Investment.
The decision concerns "the ABB Robotics business in China", not the entire division. ABB adds that the two groups remain "in close dialogue" and are working "constructively" on the transaction. Asked by the AWP news agency, ABB declined to comment on possible next steps, Inside IT reported on 5 November 2026.
The block comes after other authorities had already given their green light. According to Inside IT, the European Commission had approved the takeover.
Why AI robotics data worries Beijing
The Chinese authorities have published no justification. The Financial Times puts forward an explanation, citing anonymous sources "familiar with the matter", according to reports by ICTjournal and Inside IT. This is therefore a press account, not an official position.
According to the British daily, Beijing is said to fear that data collected by the division could be used to train American artificial intelligence models. Inside IT specifies that these models could include those of OpenAI, in which SoftBank holds a significant stake.
This concern becomes clearer in light of the nature of the business. ABB presents its division as a provider of platforms that combine autonomous mobile robots, software and artificial intelligence. According to the company, quoted by ICTjournal, more than 80% of this offering is based on software components or artificial intelligence functions.
The Financial Times mentions other demands, again according to its sources. China reportedly wants part of the production capacity to remain on its territory, together with the intellectual property of certain activities. The business is also said to have long benefited from public support. A sale of parts of the business to Chinese owners was also reportedly considered.
China, ABB Robotics' largest market
China is the division's largest market, Inside IT points out. More than 90% of the robots intended for Chinese customers are manufactured there.
The Kangqiao factory in Shanghai is at the heart of this. ABB inaugurated it on 2 December 2022, according to its statement at the time. The site covers 67,000 m² and represents an investment of 150 million dollars. It includes an 8,000 m² research and development centre dedicated to artificial intelligence, machine vision and digital twin technology.
ABB described an "in China, for China" strategy there. The site is one of the group's three robot factories, alongside Västerås in Sweden for Europe and Auburn Hills, in the United States, for the Americas. The same statement describes production driven by the collection and analysis of data, which sheds light on the issue raised by the Financial Times.
The same statement presents China as the world's largest robotics market, with 51% of robot installations in 2021. For Switzerland, the case ties into a broader question: the position of Swiss robotics in the face of China.
What the block changes for the Rotork takeover
The sale of the robotics division was meant to partly finance ABB's next acquisition. On 16 July 2026, the group announced an offer of 503 pence per share for the British company Rotork, a manufacturer of electric actuators. The transaction represents an enterprise value of around 5.5 billion dollars.
In that statement, ABB set out its financing. It was counting on its cash, around 5.8 billion dollars as of 30 June 2026, and on committed bank facilities. It also expected around 4.8 billion dollars net from the sale to SoftBank, with closing targeted for the second half of 2026.
ABB presented these proceeds as a liquidity boost, not as a condition of the takeover. The statement of 5 November 2026 says nothing about its effects on Rotork, whose closing is still expected in the first half of 2027.
| Date | Step |
|---|---|
| 23 April 2025 | ABB announces its intention to spin off its robotics division and list it on the stock exchange |
| 8 October 2025 | Agreement to sell to SoftBank for 5.375 billion dollars |
| 16 July 2026 | Offer for Rotork, partly financed by the expected proceeds of the sale |
| 5 November 2026 | ABB confirms the Chinese prohibition of the Chinese part of the takeover |
According to ICTjournal, ABB Robotics employs around 7,000 people and generated 2.3 billion dollars in revenue in 2024. This represents around 7% of the group's sales.
What we don't know yet
- Whether SoftBank will make a new attempt. According to the Financial Times, quoted by Inside IT, the Japanese group is examining this possibility; it was still expecting approval the week before the decision.
- Whether the Chinese business will be separated from the rest of the division, for example in favour of Chinese owners, as Beijing reportedly considered according to the Financial Times.
- The closing timetable: ABB has not announced any new date for the sale.
Sources
- ABB: Update on divestment of ABB Robotics (5 November 2026)
- ICTjournal: La Chine bloque la vente de la division robotique d'ABB à SoftBank
- Inside IT: China blockiert ABB-Deal mit Softbank
- ABB: ABB expands automation offering with acquisition of Rotork (16 July 2026)
- ABB: ABB opens state-of-the-art robotics mega factory in Shanghai (2 December 2022)
