Nvidia’s $40 billion bid for Arm Holdings is over. Nvidia and Japanese mega-conglomerate SoftBank, which owns Arm, terminated the deal late Monday citing “significant regulatory challenges.”

Arm is now destined for a return to the stock market with a new public offering by the first fiscal quarter of 2023.

“Arm has a bright future, and we’ll continue to support them as a proud licensee for decades to come,” Nvidia CEO Jensen Huang said in a statement. “Arm is at the center of the important dynamics in computing. Though we won’t be one company, we will partner closely with Arm.”

Nvidia announced its plans to acquire British chip designer Arm Holdings in September 2020, at the time expressing optimism the deal would close within 18 months. The acquisition presented an opportunity to rebalance its books in the face of investor pressure, while Nvidia would gain access to Arm’s extensive portfolio of intellectual property, talent, and its licensing model.

However, right out the gate the deal was dogged by hostility from regulators that only grew in the months that followed.

In early 2021, the British government opened an antitrust investigation into the deal, and in April of that year said it would intervene on national security grounds. The acquisition was dealt another blow last October when the European Union launched an investigation of its own citing concerns that the deal could harm Arm customers, increase pricing, and hamper innovation.

The death knell for the acquisition came in the final hours of 2021 when the U.S. Federal Trade Commission sued to block the merger.

The deal’s termination also sees the end of Arm CEO Simon Segar’s 9-year tenure as CEO. Arm’s Board of Directors today announced Rene Haas, president of Arm’s intellectual property group, would succeed Segars.

“Rene is the right leader to accelerate Arm’s growth as the company starts making preparations to re-enter the public markets,” SoftBank CEO Masayoshi Son said in a statement. “I would like to thank Simon for his leadership, contributions, and dedication to Arm over the past 30 years.”