Nvidia is “quietly” preparing to abandon its $40 billion acquisition of British chip designer Arm, Bloomberg News reports.
The deal has faced close scrutiny from regulators around the world, who worry it would give Nvidia an unfair advantage in the semiconductor industry.
Nvidia is “quietly” preparing to abandon its $40 billion acquisition of British chip designer Arm, Bloomberg News reported Tuesday.
The U.S. chipmaker has told partners it’s not expecting the deal to be finalized, the news agency reported, citing people familiar with the matter. SoftBank, which currently owns Arm, is ramping up preparations for Arm to go public in lieu of the Nvidia takeover, according to 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,” a Nvidia spokesperson told CNBC by email.
A SoftBank spokesperson said: “We remain hopeful that the transaction will be approved.”
Arm was not immediately available for comment when contacted by CNBC.
Nvidia shares fell around 3% in U.S. premarket trading.
The deal has faced close scrutiny from regulators around the world, who worry it would give Nvidia an unfair advantage in the semiconductor industry.
