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Nvidia preparing to abandon Arm deal - report

By Michele Maatouk

Date: Tuesday 25 Jan 2022

Nvidia preparing to abandon Arm deal - report

(Sharecast News) - US tech company Nvidia was said on Tuesday to be preparing to abandon its purchase of chip maker Arm from Softbank after making little to no progress in winning approval for the $40bn deal.
Bloomberg cited people familiar with the matter as saying that Nvidia has told partners that it doesn't expect the transaction to close. SoftBank, meanwhile, was understood to be stepping up preparations for an Arm initial public offering as an alternative to the Nvidia takeover.

The purchase has faced fierce backlash from regulators and the chip industry, including Arm's own customers. The US Federal Trade Commission sued to stop the deal in December on the grounds that Nvidia would become too powerful if it gained control over Arm's chip designs.

There is also resistance to the deal in China, where authorities are inclined to block the takeover if it wins approvals elsewhere, Bloomberg reported, although they don't expect it to get that far.

Bloomberg said both Both Nvidia and Arm's leadership are still pleading their case to regulators, and no final decisions have been made.

Nvidia spokesman Bob Sherbin told Bloomberg: "We continue to hold the views expressed in detail in our latest regulatory filings - that this transaction provides an opportunity to accelerate Arm and boost competition and innovation."

Nvidia shares fell following the report and by 1525 GMT were trading down 5.1% at $221.80.

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