(Reuters) – Nvidia’s talks to buy British chip designer Arm from Softbank have failed, a person familiar with the matter told Reuters on Monday, indicating that Arm would now prepare for an IPO.
Several regulatory obstacles have arisen in the face of the project, particularly in the United States, where the competition authority launched legal proceedings in December to block the operation.
The British authorities have also announced the opening of an in-depth investigation into this possible acquisition, which is also being examined by the European Union.
Nvidia declined a request for comment. Arm and Softbank did not immediately respond to a request for comment.
The breakdown of talks between Nvidia and Softbank was first reported by the Financial Times, which quoted a source as saying Softbank will receive compensation of up to $1.25 billion for breaking off negotiations.
(Report Anirudh Saligrama Bangalore and Jane Lanhee Lee Oakland; French version Jean Terzian)