(WSJ) Softbank says it will pursue a public listing of its UK-based chip entity Arm following a collapse of the blockbuster $40 billion deal by Nvidia.
The decision to call off the deal follows antitrust concerns by regulators, with the Federal Trade Commission, in December, suing to block the transaction. British regulators also began scrutinizing the Arm deal last year over the transaction’s national security and competition concerns.
Following the collapsed deal, SoftBank will pocket $1.25 billion as a breakup fee from Nvidia.
SoftBank will now revive plans for an Arm IPO before the end of its next fiscal year, with the decision previously considered before the Nvidia deal.
SoftBank acquired Arm close to six years ago for $32 billion, but has struggled to support its growth.
SoftBank says Arm enjoyed two years of robust business momentum on growing chip demand. The company says the end of uncertainty over Nvidia will allow Arm to pursue its growth strategy.
9984: TYO is down -0.90%, NVDA: NASDAQ is down -0.68% on premarket.
