Japanese conglomerate SoftBank has called off its planned sale of UK microchip designer Arm to US tech group Nvidia.
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 significant regulatory hurdles in the United Kingdom, the United States and the European Union.
SoftBank and Nvidia have agreed to end their sale agreement “due to significant regulatory challenges preventing consummation of the transaction, despite the parties’ good faith efforts,” the companies said in a joint statement to investors. We will seize this opportunity and start preparing to go public with Arm and make even more progress,” SoftBank CEO Masayoshi Son added.
SoftBank did not elaborate on Arm’s planned stock market listing, which has sparked speculation among investors about which stock exchange(s) will be chosen for sale.
The statement also said that, according to the agreement signed by both firms in 2020, SoftBank would hold a $1.25 billion non-refundable deposit paid by Nvidia.
under scrutiny In December, the US Federal Trade Commission sued to block the purchase. He argued that competition in the growing market for microprocessors for self-driving cars and a new category of network chips could suffer if Nvidia owned Arm.
UK and EU regulators were also scrutinizing the planned takeover amid concerns it could push up chip prices and reduce choice and innovation.
Meanwhile, Arm chief executive Simon Segars, who has been in the role since 2013, is stepping down. He will be succeeded by Rene Haas, who most recently served as president of intellectual property at Arm. Having put the uncertainty of the past few months behind us, we are fueled by a renewed energy to move on to a growth strategy and change lives around the world,” said Haas. Segars, who has been with the company for three decades, will stay on as an adviser to help with the transition.