Dow Today – Nvidia preparing to abandon acquisition of Arm
(Reuters) –Nvidia Corp is preparing to abandon its purchase of Arm Ltd from SoftBank Group Corp after offering about $40 billion for the British company in 2020, Bloomberg News reported https://www.bloomberg.com/news/articles/2022-01-25/nvidia-is-said-to-quietly-prepare-to-abandon-takeover-of-arm?srnd=premium&sref=2h1zKciy on Tuesday, citing people familiar with the matter.
Nvidia has told partners that it does not expect the deal to close, while SoftBank is stepping up preparations for an initial public offering (IPO) of Arm, the report said.
“This transaction provides an opportunity to accelerate Arm and boost competition and innovation,” an Nvidia spokesperson said. Arm and SoftBank did not immediately respond to Reuters requests for comment.
The deal has faced several regulatory roadblocks, with the U.S. Federal Trade Commission suing to block the takeover in December.
British regulators have also said they would launch an in-depth probe of the deal, and the acquisition is also under scrutiny in the European Union.
Arm’s CEO said in July that the company had contemplated an IPO but it would hurt its ability to expand and invest.
(Reporting by Akash Sriram in Bengaluru and Supantha Mukherjee in Stockholm; Editing by Aditya Soni)