# China regulatory block of SoftBank ABB acquisition > Developing situation record from CLSTR: https://clstr.news/situations/china-regulatory-block-of-softbank-abb-acquisition > Updated: 2026-11-07T06:39:13.000Z. Sources: 19. Developments: 2. Chinese regulatory authorities, including the Office of the Working Mechanism for Foreign Investment Security Review and the National Development and Reform Commission (NDRC), blocked SoftBank’s planned $5.4 billion acquisition of ABB’s robotics division within China. The decision specifically prohibits the takeover of the Swiss multinational’s local robotics operations, which represent approximately 30% of the division's total business. Beijing’s decision is reportedly driven by national security concerns regarding the potential outflow of sensitive industrial data. Authorities expressed concern that such data could be used to train foreign artificial intelligence models, noting SoftBank’s significant investment in OpenAI. The NDRC also investigated the security of intellectual property and domestic production capacities. The move occurs amid heightened geopolitical tensions between China and Japan. In response to the veto, SoftBank and ABB are reportedly exploring restructuring options. These include potentially spinning off the China-based business into a separate, Chinese-managed entity to allow SoftBank to proceed with the acquisition of the remaining global operations. ABB is also reportedly evaluating alternatives such as seeking different buyers or pursuing an initial public offering. Both companies have stated they are continuing to maintain a dialogue and are working constructively to explore potential transaction structures that might satisfy regulatory requirements. ## Claims - The original deal between SoftBank and ABB was valued at approximately $5.4 billion. (reported by 15 sources) - China's Office of the Working Mechanism for Foreign Investment Security Review prohibited the acquisition of ABB's robotics business in China. (reported by 11 sources) - Chinese authorities are concerned that robotics data could be used to train foreign AI models, including those from OpenAI. (reported by 10 sources) - China is ABB's largest robotics market, representing about 30% of its total robotics business. (reported by 9 sources) - ABB and SoftBank are continuing to collaborate and maintain a dialogue regarding the transaction. (reported by 9 sources) - Approximately 90% of robots for Chinese customers are manufactured locally in China. (reported by 8 sources) - The deal was originally announced in October 2025. (reported by 8 sources) - SoftBank shares fell nearly 7% in Tokyo following the news. (reported by 3 sources) ## Timeline ### 2026-11-07: China blocks SoftBank acquisition of ABB Robotics business China's NDRC has blocked SoftBank's acquisition of ABB Robotics' China business due to data security concerns, prompting talks of a potential spin-off of the Chinese operations. 4 sources. https://clstr.news/cluster/china-blocks-softbank-acquisition-of-abb-robotics-business ### 2026-11-05: China blocks SoftBank acquisition of ABB robotics division China has blocked SoftBank’s $5.4 billion acquisition of ABB’s robotics division in the country, citing national security concerns over the potential overseas transfer of robotics data for AI training. 16 sources. https://clstr.news/cluster/china-blocks-softbank-acquisition-of-abb-robotics-division --- Cite as: China regulatory block of SoftBank ABB acquisition. CLSTR, https://clstr.news/situations/china-regulatory-block-of-softbank-abb-acquisition