SoftBank, ABB weigh China carve-out to save $5.4 billion robotics deal
The two companies are discussing spinning off ABB's China robotics business into a separate legal entity, according to Bloomberg.
SoftBank and ABB are considering separating the Chinese operations of ABB's robotics business into a separate entity in an effort to salvage SoftBank's $5.4 billion acquisition of the division, according to Bloomberg, which reported the talks on November 7, 2026, citing multiple sources.
The move follows a decision by Chinese authorities on November 5, 2026, to prohibit SoftBank's acquisition of ABB's robotics China business. The proposed separation is intended to safeguard robotics-related data and technology that the Chinese government regards as sensitive, while allowing the wider acquisition to go ahead.
China is the largest market for ABB's robotics division, accounting for about 30% of the business, and Shanghai hosts large robot production and development facilities.
Both ABB and SoftBank declined to comment on the discussions. ABB is also preparing for the possibility that the deal fails, including finding another buyer or returning to its originally planned spin-off and listing of the robotics division. Sources said a sale to another buyer could value the business at $2-3 billion, well below SoftBank's $5.4 billion price.
Citi analyst Martin Wilkie estimated that China's prohibition cuts ABB's available funds for M&A to about $5 billion, roughly half the previous amount. SoftBank had agreed to buy the robotics division, and ABB had planned to complete the sale by the end of the year and use the proceeds for other acquisitions. Before agreeing to sell to SoftBank, ABB had planned to spin off and list the division.
Quick answers
Why did China block SoftBank's purchase of ABB's robotics China business?
Chinese authorities prohibited the acquisition of the China business on November 5, 2026; the reported separation plan is meant to protect robotics data and technology the government considers sensitive.
What is SoftBank paying for ABB's robotics division?
SoftBank agreed to acquire the division for $5.4 billion. Sources said a sale to a different buyer could value the business at $2-3 billion.
How big is ABB's robotics business in China?
China is the largest market for the division, accounting for about 30% of the business, with large robot production and development facilities in Shanghai.