Industrial Robotics M&A Faces Reset After China Block

SoftBank, ABB Weigh China Carve-Out to Salvage USD 5.4 Billion Robotics Deal After Beijing Block

ZURICH, Switzerland — November 7, 2026 — SoftBank Group Corp. and ABB Ltd. are exploring a carve-out of the Chinese operations of ABB Robotics to salvage a USD 5.4 billion transaction that Chinese authorities halted on Thursday, according to a Bloomberg report citing people familiar with the matter. The development bears on the Industrial Robotics Market, where China is the largest single market for ABB’s robotics division.

China’s Office of the Working Mechanism for Foreign Investment Security Review halted SoftBank’s planned acquisition of the ABB unit. The two companies and their advisers are studying how the Chinese business could be separated, the people said.

A carve-out would create a separate entity for the China unit under different ownership. The aim is to address Beijing’s concerns about safeguarding data and technology, the report said.

No reason for the prohibition has been announced. Beijing has a say in the transaction because ABB Robotics operates a significant production and development facility in Shanghai. The decision surprised ABB, which expected to close the divestment by year-end, the people said. They added that the efforts may fail and that no deal is assured.

For market context, Next Move Strategy Consulting reports that the global industrial robotics market was valued at USD 48.75 billion in 2025 and is projected to reach USD 88.66 billion by 2030, a CAGR of 12.7% over 2025–2030.

Key Highlights:

• A separately owned China entity is being studied so that the remaining robotics business could still be sold to SoftBank.

• ABB is also reviewing other options, including another buyer, with one person saying the business could be valued at USD 2 billion to USD 3 billion.

• A return to the original spin-off plan is under consideration, but the people described it as complicated because the divestment agreement is already signed.

• Citigroup analyst Martin Wilkie estimated that the block cuts ABB’s capacity for other acquisitions in half, to about USD 5 billion.

Analyst Insight:

According to analysts at Next Move Strategy Consulting, the situation shows how closely competitive positioning in the industrial robotics industry is tied to Asia-Pacific, which accounts for the majority of new robot installations and where China’s automation push is state-supported and scale-centric.

NMSC analysts note that ABB ranks as the second-largest supplier in the global market, behind FANUC. Any change to the ownership structure of its robotics division is therefore relevant to the competitive landscape.

Industry Outlook:

No agreement has been reached, and the parties have declined to comment. Developments to watch include whether a separately owned Chinese entity satisfies the Chinese review office, whether ABB pursues another buyer, and whether the original spin-off is revived. Market participants will also be watching how ownership of Chinese production and research facilities is treated in future cross-border robotics transactions.

Source: Bloomberg (via SWI swissinfo.ch)

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Prepared By: Sanyukta Deb