Nvidia Planning To Abandon $40 Billion Acquisition Of Arm Ltd.
Date
1/25/2022 10:14:09 AM
(MENAFN- Baystreet.ca)
Nvidia Planning To Abandon $40 Billion Acquisition Of Arm Ltd.
Chipmaker Nvidia (NVDA) is preparing to abandon its $40 billion U.S. purchase of Britain's Arm Ltd., according to multiple media reports.
Nvidia has told partners that it does not expect the deal to close. Meanwhile, SoftBank, which currently owns Arm, is stepping up preparations for an initial public offering (IPO) of the British semiconductor company.
Nvidia shares are down 3.2% in today's premarket, leading losses among chipmakers in a down stock market.
The deal has faced several regulatory hurdles, with the U.S. Federal Trade Commission launching a lawsuit last December to block it. The buyout is also under scrutiny by British and European regulators.
The U.S. Justice Department Antitrust Division has said that it would seek to stop mergers that pose anticompetitive concerns rather than striking deals for concessions that would allow the transactions to close.
The deal for Arm has risen in value since it was first announced in September 2020 due to a surge in shares of Nvidia sparked by strong growth of its chip business.
Arm executives said last year that the company has contemplated an IPO if the Nvidia acquisition does not close but no final decisions have been made.
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