SoftBank Group Sold Chip Designer for $40 Billion

31
SoftBank and Arm

Shares of SoftBank Group soared on Monday thanks to a deal with Nvidia. However, before discussing the share of the conglomerate, let’s have a look at the stocks in Asia.

Interestingly, stocks in the Asia Pacific strengthened their positions, as investors analyzed the information regarding the SoftBank-Nvidia deal.

South Korea’s Kospi gained 1.3% on the day to 2’427.91.

In Japan, the Nikkei 225 added 0.65% to close at 23’559.30. In the meantime, the Topix index advanced 0.88% to end its trading day at 1’651.10.

Notably, mainland Chinese stocks saw gains on the day. The Shanghai Composite gained 0.57% to about 3’278.81. Moreover, the Shenzhen Component advanced 0.611% to around 13’021.99.

Australia’s S&P/ASX 200 advanced about 0.68% to 5’899.50.

SoftBank and Nvidia

The NVIDIA logo

Let’s get back to the shares of Japan’s conglomerate SoftBank Group. As stated above, shares jumped more than 8% on Monday.

It is worth mentioning that, shares of SoftBank jumped around 9% following an announcement that the firm made the decision to sell chip designer Arm to Nvidia.

Notably, Nvidia agreed to buy the chip designer in a deal worth $40 billion. The companies announced this deal two days ago. It is worth mentioning that, the deal will be a mix of $21.5 billion in Nvidia stock and $12 billion in cash, including $2 billion payable at signing.

Moreover, this announcement helped to boost the shares of major chip firms in the region. For instance, shares of SK Hynix in South Korea gained 2.04%. Furthermore, Samsung Electronics advanced 2.37%.

Moreover, shares of Taiwan Semiconductor Manufacturing Company also gained 1.03%.

Last but not least, investors are closely monitoring the situation in Japan. As a reminder, the successor to Prime Minister Shinzo Abe was announced on Monday. Yoshihide Suga will replace Japan’s long-serving prime minister.

Yoshihide Suga won a ruling Liberal Democratic Party leadership election on Monday. Last month, Shinzo Abe decided to leave his post.

  • Support
  • Platform
  • Spreads
  • Trading Instument

For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE!

Leave a Reply

Sending