Nvidia's $40bn takeover of UK chip designer Arm collapses

The cash-and-stock deal was announced in 2020 but the US Federal Trade Commission sued to block it in December, arguing that competition in the nascent markets for chips in self-driving cars and a new category of networking chips could be hurt if Nvidia carried out the purchase. The buyout also faced scrutiny in the UK and the EU amid concerns that it could push up prices and reduce choice and innovation. It had yet to receive approval in China, which has previously withheld approval of cross-border chip acquisitions. SoftBank said on Tuesday that Arm would now prepare for a stock market flotation before the end of the financial year to 31 March 2023. The sale would have marked an early exit from Arm for SoftBank, which acquired it for $32bn, and the collapse of the deal marks a big setback to the Japanese conglomerate's efforts to generate funds at time when valuations across its portfolio are under pressure.