China's National Development and Reform Commission has told SoftBank it will not approve the Japanese group's roughly $5.4 billion purchase of ABB's robotics business, according to a report published Thursday. The decision would sink a deal Masayoshi Son has positioned as a pillar of SoftBank's push into "physical AI," which pairs AI models with robots that move in the real world.
SoftBank agreed in October 2025 to buy 100% of ABB's robotics unit for about $5.375 billion, with completion planned for mid-to-late 2026. The unit generated about $2.3 billion in revenue in 2024, roughly 7% of ABB's group total, and employs about 7,000 people.
China is the unit's largest market, accounting for about 30% of the robotics business. ABB makes more than 90% of the robots it sells to Chinese customers inside China and built a $150 million robot factory in Pudong, Shanghai.
Key facts
- 01China's NDRC has told SoftBank it will not approve its roughly $5.4 billion purchase of ABB's robotics unit.
- 02SoftBank agreed to the deal in October 2025; the European Commission cleared it unconditionally in March.
- 03ABB's robotics unit had about $2.3 billion in 2024 revenue and about 7,000 employees; China is its largest market.
- 04One report cites concern that China-generated robotics data could train overseas AI models, including OpenAI's.
- 05SoftBank shares fell about 5% in Tokyo on Thursday.
The NDRC has not publicly disclosed its grounds. One report says the concern is that sensitive robotics data generated in China could be transferred abroad and used to train AI models, including those developed by OpenAI, in which SoftBank is a major investor.
The deal cleared China's antitrust review in February, according to Korean outlet JKN, but ran into trouble in the NDRC's national security and supply chain assessment. During that review, conditions were reportedly proposed, including selling parts of ABB's robotics business to Chinese owners or keeping certain intellectual property in China. Neither the rejection nor the review details have been confirmed in an official announcement.
The European Commission cleared the acquisition unconditionally in March. US approval was still pending as of late October.
Son had planned to combine ABB's robotics technology, platforms and global network with SoftBank's AI and next-generation computing investments. He reportedly saw the unit as a core pillar of SoftBank's cooperation plans with Figure AI.
SoftBank shares fell about 5% in Tokyo on Thursday, and the Nikkei 225 slipped 0.5%. The drop also tracked an overnight slide in Arm Holdings after its guidance and a broader AI selloff after Democrats won both chambers of Congress in the US midterms.
SoftBank and ABB have not publicly responded. SoftBank is working to establish the specific reasons for the decision and whether it can reapply or obtain remedies. If the deal fails, ABB will have to decide how to run the robotics business on its own.
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