Nvidia Corp. NVDA, +1.68% said Tuesday it expects to book a charge of $1.36 billion in the first quarter of fiscal 2023 due to the termination of its agreement to acquire Arm Ltd. from Softbank Group Corp. 9984, -0.90%. The parties agreed to terminate the deal due to “significant regulatory challenges” the company said in a regulatory filing. “In accordance with the terms of the Purchase Agreement, the Sellers will retain the $1.25 billion prepaid by the Company, and the Company will retain its 20-year Arm license,” said the filing. agreed to acquire Arm for $40 billion in cash and stock in 2020, in what would have been the biggest semiconductor merger in history. The deal faced immediate opposition from other chip companies and regulators in the U.K., where Arm is located, and U.S. regulators had also stepped in the way. Softbank said Monday it will now take Arm public in an initial public offering that it aims to complete within fiscal 2023. Softbank was expected to take $1.25 billion in a breakup fee. Nvdia shares were down 1% premarket, but have gained 71% in the last 12 months, while the S&P 500 SPX, -0.37% has gained 15%.
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