Nvidia-SoftBank deal on chip design producer Arm is off

The planned acquisition of chip design producer Arm by US-based semiconductor manufacturer Nvidia is off the table. Nvidia and Japan’s SoftBank Group – which owns UK-based Arm – have announced the termination of their 2020 Arm agreement due to ‘significant regulatory challenges’. The deal had attracted the attention of competition authorities in the USA, the UK, and elsewhere.

The US Federal Trade Commission sued to block the merger over concerns that Nvidia would gain the ability to undermine its competitors and stifle innovation. At the same time, in the UK, the Competition and Markets Authority (CMA) was carrying out an investigation into the deal’s implications for competition and national security. The EC and China were also looking into the matter. 

What’s next? SoftBank and Arm said they are working on a public offering of Arm to be initiated within the next 12 months.