Bloomberg News reported on Tuesday, citing people familiar with the matter, that Nvidia is preparing to drop its bid for Arm from SoftBank Group Corp.

The U.S. chipmaker has told partners that the deal is not expected to close, while SoftBank is gearing up for Arm’s initial public offering (IPO), the report said.

An Nvidia spokesman said the company still believes the acquisition “provides an opportunity to accelerate Arm and foster competition and innovation.” Arm and SoftBank did not immediately respond to Reuters’ requests for comment.

Nvidia shares fell 3.2% before the open, leading the chipmaker in a generally weak market.

The deal faces several regulatory hurdles, and the U.S. Federal Trade Commission sued to block it in December. The acquisition has also come under scrutiny by UK and EU regulators.

Jonathan Kanter, the new head of the Justice Department’s antitrust division, has said he will seek to stop mergers that raise anticompetitive concerns, rather than make that get the deal done.

The value of Arm’s -heavy trade has risen since the September 2020 announcement, as strong growth in the data center-focused chip business has sparked a surge in Nvidia’s stock.

Arm’s chief executive said last July that the company had considered an initial public offering, but that would hurt its ability to expand and invest.

© Thomson Reuters 2022


(This story has not been edited by NDTV staff and was automatically generated from the syndicated feed.)

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