Nvidia is said to end planned purchase of Arm Holdings from Softbank
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Nvidia (NASDAQ:NVDA) is said to have decided to terminate its planned purchase of Arm Holdings (ARMHF) from Softbank (OTCPK:SFTBY) after regulators in the U.S., UK and Europe had issues with the deal.
Nvidia (NVDA) decided to end its planned Arm (ARMHF) acquisition at a board meeting on Monday, according to a FT report. Softbank is expected to receive a $1.25B break-up fee and wants to IPO Arm before the end of the year.
The latest news comes after Bloomberg reported late last month that Nvidia (NVDA) was "quietly" preparing to abandon its acquisition of the U.K.-based chip designer.
The failure of the deal likely means there will be a change in Arm management with CEO Simon Segars being replaced by Rene Haas, head of the Arm's intellectual property unit, according to the FT. Softbank would like to pursue an IPO in the U.S., though some in the UK want the company to be listed there.
The transaction has received regulatory pushback, including in the U.S., where the Federal Trade Commission last month sued to block the deal on antitrust concerns.
Last month, Nvidia not going ahead with Arm acquisition is 'net positive,' BofA says.