US firm Nvidia is scrapping its $40 billion bid to buy UK mobile chip technology powerhouse Arm from SoftBank after persistent objections from regulators, the Financial Times reported Tuesday.

Nvidia and SoftBank Group both declined to comment on the report, which cited three unnamed sources with direct knowledge of the deal.

But the collapse would be no surprise, after recent speculation that the deal was on the verge of failure following pressure from US, UK and EU regulators concerned it would undermine competition.

In December, US regulators filed a lawsuit seeking to block the merger, while British and European regulators had ordered probes into the deal.

Japan's SoftBank Group announced in 2020 that it was selling Arm for up to $40 billion in a deal it hoped to complete in early 2022, subject to regulatory approvals.

The value of the cash-and-shares deal has risen since as stock markets have rallied, with Nvidia's shares soaring.

The California-based firm is one of the world's largest and most valuable computing companies, while Arm creates and licenses microprocessor designs and architectures.

Nvidia, known for graphics cards favoured in the video game industry, saw sales soar during Covid-19 lockdowns as gaming exploded in popularity.

When the merger plan was announced, Nvidia said it would accelerate innovation and "create the premier computing company for the age of artificial intelligence."

Founded in 1990, Arm dominates the global smartphone market and its technology has been used in more than 180 billion chips shipped worldwide.

It is also present in cloud computing and the internet of things.

SoftBank had purchased Arm in 2016 for $32 billion, and now hopes to offload the firm through an initial public offering, the Financial Times reported.

SoftBank would prefer to list the company in New York but could face British pressure for a listing in London.

The deal's collapse also prompted Arm's chief executive to step aside, the FT said.

SoftBank is set to report its earnings in Tokyo later on Tuesday.

sah/kaf/ssy

NVIDIA

SOFTBANK GROUP

Related Links
Computer Chip Architecture, Technology and Manufacture
Nano Technology News From SpaceMart.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Toshiba unveils new plan to split into two companies
Tokyo (AFP) Feb 7, 2022
Japan's Toshiba on Monday announced plans to split into two companies, revising a controversial proposal to divide into three following a tumultuous period for the storied industrial conglomerate. The group said it plans to spin off its device segment, including its semiconductor business, in a bid to speed up decision-making and boost stock performance. Shareholders, who have clashed with management on the best way forward for the troubled company, must still approve the proposal in a vote expe ... read more