SoftBank Group and ABB are considering separating the China operations of ABB's robotics business, raising the prospect of a move to avoid regulatory risks in the approximately $5.4 billion acquisition plan. Chinese regulatory reviews have reportedly affected the deal, with the sale of the remaining business and new proposals also under consideration.
SoftBank Group and ABB are considering separating the China operations of ABB's industrial robotics business as part of the acquisition plan. They are exploring whether separating the operations could ease regulatory concerns and enable the remaining business to be sold to SoftBank Group. SoftBank Group is reportedly leading the transaction.
China's foreign investment regulators issued a notice this month prohibiting the acquisition of ABB's China operations. No reason was disclosed, but the robotics business based in Shanghai represents a significant asset in the Chinese market, and the separation proposal is viewed as part of the regulatory response. The transaction received unconditional clearance under competition law in February 2026 but has been halted at the security review stage.
ABB's robotics business generated approximately $2.3 billion in revenue in 2024, accounting for approximately 7% of the ABB Group's total. The acquisition price is reportedly approximately $5.375 billion, and the business has approximately 7,000 employees. In 2024, its operations spanned multiple regions, including China. If the separation proposal goes ahead, it could affect the valuation and terms of the agreement.
ABB and SoftBank Group shares have both fallen sharply in market reaction, and SoftBank Group is expected to reconsider its growth strategy. SoftBank Group has also reportedly been pursuing other growth plans, including establishing a new data-center-related company, Roze.