BUSINESS – China has blocked SoftBank Group’s planned $5.4 billion acquisition of ABB’s robotics division, delivering a significant setback to the Japanese investment giant’s ambition to expand into physical artificial intelligence. According to The Japan Times, citing Bloomberg in its November 5 report, a Chinese government agency prohibited the transaction, a decision confirmed by ABB in an emailed statement.
The acquisition was expected to strengthen SoftBank’s position in industrial robotics. ABB’s division employs more than 7,000 people and supplies robotic arms and industrial machinery to major manufacturers, including BMW. Its substantial presence in China made the business particularly attractive, but also placed the transaction under close regulatory scrutiny. Following the announcement, SoftBank shares dropped approximately 7% in Tokyo. A company spokesperson declined to comment.
SoftBank founder Masayoshi Son had identified the acquisition as a key element of his strategy to participate more deeply in the artificial intelligence boom. The company has already made substantial commitments to the sector, including a nearly $65 billion investment in OpenAI and plans involving hundreds of billions of dollars for data center development. Investors had expected ABB’s robotics business to contribute additional revenue and profits, helping support SoftBank’s expanding AI investments.
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Bloomberg Intelligence analyst Kirk Boodry highlighted the strategic value of the acquisition, despite ABB’s technological limitations. He said, “ABB Robotics lacks the cutting-edge innovation found across SoftBank’s physical AI startup portfolio,” but emphasized that its industrial expertise and manufacturing knowledge could help transform robotic concepts into commercially successful products.
Beijing’s decision also reflects growing concerns about protecting sensitive technology and information in the AI era. Industrial robots generate valuable operational data that could potentially be transferred overseas and used to train artificial intelligence models. China has increasingly tightened controls over international data transfers and foreign investments involving strategically important technologies.
The blocked transaction follows another significant intervention in April, when Chinese regulators prohibited Meta Platforms’ proposed $2 billion acquisition of AI startup Manus. SoftBank’s deal similarly underwent a foreign investment security review before authorities issued their decision.
Meanwhile, Japan remains home to several major industrial robotics manufacturers, including Fanuc, Yaskawa Electric and Kawasaki Heavy Industries. These companies have partnered with Nvidia to explore AI applications in factories, hospitals and logistics networks, as competition from Chinese robotics manufacturers continues to intensify.
The decision places another obstacle in the path of SoftBank’s ambitions, while highlighting how geopolitical tensions and data security concerns are increasingly influencing the global race to develop intelligent machines.
