Bermuda Post

Sunday, Mar 26, 2023

Arm's $40bn sale to Nvidia is called off after US-UK regulatory pressure

Arm's $40bn sale to Nvidia is called off after US-UK regulatory pressure

Arm is now set to make it back to the stock market under a new chief executive but it is yet to be revealed if the listing would mark a return to London.

The $40bn deal for US tech giant Nvidia to buy UK computer chip designer Arm has collapsed after the takeover attracted regulatory hurdles on both sides of the Atlantic.

Arm's owner, the Japanese conglomerate SoftBank, and the US firm said the plug had been pulled on the deal, which was first agreed two years ago, and confirmed that Arm would return to the stock market instead.

The takeover, which would have created a company with a value of around $80bn, had first faced the prospect of trouble when the British government ordered an in-depth probe over national security and competition grounds.

Arm was delisted after its 2016 takeover by Softbank


That was after an initial investigation by the Competition and Markets Authority warned that the proposed tie-up could weaken rivals and stifle innovation.

There was a similar reaction from the authorities in Asia and the European Union but the killer blow came in December when the US Federal Trade Commission sued to block the deal.

It argued that competition in the markets for chips in self-driving cars and a new category of networking chips could be hurt if Nvidia carried out the purchase.

SoftBank had only acquired Arm in 2016, paying $32bn to take the company private.

It had been looking to make a quick profit to boost flagging fund values.

Arm - best-known for its chips in Apple and Samsung smartphones - said it had appointed Rene Haas to replace Simon Segars as its chief executive officer and member of the board, effective immediately.

The company is now expected to be prepared for a return to the stock market in 2023 though the potential locations were not disclosed.

Masayoshi Son, Softbank's chief executive, said of the new plan: "Arm is becoming a centre of innovation not only in the mobile computing revolution, but also in cloud computing, automotive, the Internet of Things and the metaverse, and has entered its second growth phase.

"We will take this opportunity and start preparing to take Arm public, and to make even further progress."

Newsletter

Related Articles

Bermuda Post
Close
0:00
0:00
In a dramatic U-turn against His Government: Judicial Overhaul Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
Nashville police officer, and a female driver shooting one another
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
×