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: ForbesIMAGE SOURCE: BBC
