The acquisition of Arm by Nvidia has been effectively canceled. This is revealed in a quarterly report issued by SoftBank, the company that owns Arm. 

It was predicted that the transaction would be worth around $40 billion. SoftBank declares firmly in its quarterly report that the acquisition is not on the table at this time. As a result of "serious regulatory difficulties" impeding sales, SoftBank and Nvidia have decided to withdraw from the agreement. In September 2020, Nvidia announced that it has reached an agreement with SoftBank about the acquisition of the company. According to a statement, Nvidia would pay $40 billion for Arm, which would include $21.5 billion in stock and $12 billion in cash. 

Arm is still operating autonomously at the moment. Arm enters into licensing agreements with clients who pay for the right to utilize Arm's semiconductor designs. These clients utilize the designs for a variety of purposes, including chips that ultimately end up in their phones and tablets. Arm would become not only a supplier, but also a rival for chipmakers, according to corporations such as Microsoft and Google.

The transaction did not appear to be approved by competition authorities in Europe, the United Kingdom, or the United States. NVIDIA had already hinted in January that it intended to terminate the deal. According to the business journal, SoftBank would receive compensation from NVIDIA for terminating the agreement worth $1.25 billion (1.1 billion euros). SoftBank now intends to sell Arm in an initial public offering (IPO) before the end of the year.

Update, the news now also has been confirmed by NVIDIA.