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China regulatory block of SoftBank ABB acquisition

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2026-11-07 14:09 UTC → 2026-11-07 20:33 UTC · added ~~removed~~

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.

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