UK chip firm Arm sale by Softbank collapses amid competition fears
-
Loading... - Nicolas Stewart
- 09 Feb 2022
- 423 Views
- 0 Like
- 0 Comment
When the deal was first announced in September 2020 it was valued at around $40bn (£29.6bn).
SoftBank now aims to float Arm's shares on the stock market by the end of March next year.
The planned sale had faced major regulatory hurdles in the UK, United States and European Union.
SoftBank and Nvidia agreed to end their sale agreement "because of significant regulatory challenges preventing the consummation of the transaction, despite good faith efforts by the parties," the companies said in a joint statement to investors.
"We will take this opportunity and start preparing to take Arm public, and to make even further progress," SoftBank's chief executive Masayoshi Son added.
SoftBank did not give any other details about Arm's planned stock market listing, which has sparked speculation amongst investors over which stock exchange, or exchanges, will be chosen for the sale.
The statement also said that, in line with the agreement signed by both firms in 2020, SoftBank would keep a $1.25bn non-refundable deposit paid by Nvidia.
Under scrutiny
In December, the US Federal Trade Commission sued to block the buyout. It argued that competition in the growing market for microprocessors for self-driving cars and a new category of networking chips could be hurt if Nvidia owned Arm.
The planned takeover was also being scrutinised by UK and EU regulators amid concerns that it could push up chip prices and reduce choice and innovation.
Meanwhile, Arm's chief executive Simon Segars, who has been in the role since 2013, is stepping down.
He will be replaced by Rene Haas, who most recently served as president of intellectual property at Arm. Read More…
