Nvidia Abandons Plans To Acquire ARM Amid Regulatory Pressure

February 8, 2022

Graphics chipmaker Nvidia scrapped its plans to acquire British semiconductor firm ARM due to “significant regulatory challenges”, the companies announced on Tuesday, a decision that comes two months after the proposed acquisition was blocked by the U.S. Federal Trade Commission while also facing increasing scrutiny in both the U.K. and the European Union.

According to a press release, ARM’s owner SoftBank will begin preparations for a public offering within the next fiscal year ending March 2023.

As part of the original acquisition agreement, SoftBank has received a $1.25 billion breakup fee from Nvidia which will be recorded as profit in its upcoming fourth-quarter earnings.

Nvidia CEO Jensen Huang noted that his company will remain a licensee of ARM’s chip technology “for decades to come” despite the failure of the deal.

If it had been allowed to go through, the cash and stock deal would have been worth around $80 billion—the largest ever in the semiconductor business.

SOURCE: Forbes
IMAGE SOURCE: BBC

THE METRO BUSINESS

Insider Tips for Excelling in MSBM’s Online Courses

Strategies for Success: MSBM’s Business Management Insights

Nations are vying to join the BRICS group, according to South Africa, as Russia assumes leadership.

Home Secretary vows to reduce net migration.

Nvidia Abandons Plans To Acquire ARM Amid Regulatory Pressure

Top Stories

AI-Driven Business Transformation: A Project Management Perspective.

DUP has reached an agreement with the UK government to reinstate power-sharing in Northern Ireland.

Global Trade at Risk: The Implications of Red Sea Ship Attacks on Consumer Goods

UK to lend back Ghana's stolen 'crown jewels,' announces Asante Gold.

Related Posts

US Chip Makers Hit By New China Export Rule

Nvidia Finds Success In World's Largest Auto Market, As China EV Market Booms

Nvidia CEO : Metaverse Could Save Companies Billions Of Dollars In The Real World

SoftBank's Arm Chooses US Listing Over UK

Courses you might like

Professional Certificate Course in Understanding the Accounting and Finance Regulatory Framework

Professional Certificate Course in Understanding the Commercial Bank Regulatory Environment

Professional Certificate in Analysing The Effects Of Exiting Plans On Organisation