$SoftBank Group (ADR) (SFTBY.US)$Chairman Masayoshi Son is very likely to secure another IPO deal — albeit a forced one.
According to a Bloomberg report, NVIDIA is likely to abandon the acquisition of Arm, the UK-based chip design company owned by SoftBank Group. As an alternative to NVIDIA's withdrawal, SoftBank will have to accelerate preparations for Arm’s IPO.
However, sources also indicated that NVIDIA and Arm’s management are still appealing to regulators. A SoftBank spokesperson expressed continued “hope” for the deal’s approval. NVIDIA reiterated that “this transaction provides an opportunity to accelerate Arm’s growth and promote competition and innovation.”
In September 2020, $NVIDIA (NVDA.US)$the announcement of the approximately $54 billion acquisition of Arm triggered strong opposition from regulators and the semiconductor industry. The U.S. Federal Trade Commission (FTC), concerned that the merger would make NVIDIA overly dominant, has filed a lawsuit against the acquisition.
The UK, where Arm is headquartered, has taken a similar stance on the deal. In November 2020, the UK government referred the transaction to the UK Competition and Markets Authority for review, but the latter concluded that the 'merged entity would not have the ability to stifle competition,' accusing opponents of the deal of 'romanticizing Arm's past while ignoring or downplaying its strongest competitors.' Last year, the UK government launched another investigation into Arm on grounds of antitrust concerns and national security risks.