World's biggest semiconductor deal between NVIDIA and ARM is called off

10th February 2022
World's biggest semiconductor deal between NVIDIA and ARM is called off

February 10, 2022: Santa Clara (CA, USA) and Tokyo, February 10 2022: NVIDIA and SoftBank Group Corp.  have announced announced the termination of the previously announced transaction whereby NVIDIA would acquire Arm Limited from SBG. The parties agreed to terminate the Agreement because of significant regulatory challenges preventing the consummation of the transaction, despite good faith efforts by the parties.
The US chipmaker's acquisition of British design firm ARM would have been the largest semiconductor deal on record.But regulators around the world have long raised concerns about the deal, eventually leading to its collapse 
The U.S. Federal Trade Commission sued to stop the transaction in December, arguing that Nvidia would become too powerful if it gained control over Arm’s chip designs. Google, Microsoft and Qualcomm had also sued to prevent the deal.
“Arm has a bright future, and we’ll continue to support them as a proud licensee for decades to come,” said Jensen Huang, founder and chief executive officer of NVIDIA. “Arm is at the center of the important dynamics in computing. Though we won’t be one company, we will partner closely with Arm. The significant investments that Masa has made have positioned Arm to expand the reach of the Arm CPU beyond client computing to supercomputing, cloud, AI and robotics. I expect Arm to be the most important CPU architecture of the next decade.”
SoftBank, is stepping up preparations for an Arm initial public offering within the fiscal year ending March 31, 2023as an alternative to the Nvidia takeover, SBG believes Arm’s technology and intellectual property will continue to be at the center of mobile computing and the development of artificial intelligence.
“Arm is becoming a center of innovation not only in the mobile phone revolution, but also in cloud computing, automotive, the Internet of Things and the metaverse, and has entered its second growth phase,” said Masayoshi Son, Representative Director, Corporate Officer, Chairman & Chief Executive Officer of SoftBank Group Corp. “We will take this opportunity and start preparing to take Arm public, and to make even further progress.”
NVIDIA and SBG had announced that they had entered into a definitive agreement, under which NVIDIA would acquire Arm from SoftBank, on September 13, 2020. In accordance with the terms of the agreement, SBG will retain the $1.25 billion prepaid by NVIDIA, which will be recorded as profit in the fourth quarter, and NVIDIA will retain its 20-year Arm license.

Read  IndiaTechOnline's story which announced the original NVIDIA-ARM deal