NvidiaAccording to Gartner analyst Alan Priestley, the $40 billion purchase of U.K. chip design firm Arm looks increasingly unlikely.

Priestley stated that the deal faces increasing regulatory scrutiny around the globe, with concerns in the U.K. (EU), the U.S., and China.

Priestley said Wednesday to CNBC that “I think it’s extremely unlikely” it would go through. CNBC reached out to Arm and Nvidia for further information.

Nvidia CEO Jensen Huang was to close the deal by March 2022. admitted in AugustIt would likely go on beyond this date.

Arm was created in 1990 from Acorn Computers’ early computing business. The energy-saving chip designs of this company are found in 95% to 95% smartphones around the globe, and in 95% or more of chips manufactured in China. It is owned by the company bought by Japan’s SoftBank in 2016 for £24 billion ($32 billion), licenses its chip designs to more than 500 companies who use them to make their own semiconductors.

Critics are concerned that the merger with Nvidia — which designs its own chips — could restrict access to Arm’s “neutral” semiconductor designs and may lead to higher prices, less choice and reduced innovation in the industry. Nvidia claims that Arm will be able to benefit from more investment and will see greater innovation thanks to the merger.

However, the U.S. chip industry is still a giant Broadcom has come out in support of the deal, many others are against it.

Rival Qualcomm has said that Nvidia could limit the supply of Arm’s technology to its competitors or raise prices. Google and Microsoft have raised the same concerns with regulators, according to Bloomberg.

In November, the U.K. government announced that it wants a full-blown investigation into the takeover of Arm, which is headquartered in Cambridge widely seen as the jewel in the crown of the British tech sector.

Nadine Dorries, Digital and Culture Secretary ordered a “phase 2” probe into the deal. The probe — to be carried out by the Competition and Markets Authority over a 24 week period — will investigate antitrust concerns and national security issues.

The Federal Trade Commission is the U.S. regulator. also has concernsThe deal. Nvidia stated that it was in talks with the agency to find “remedies” for those concerns during its fourth quarter earnings call.

The European Commission, which is the executive arm within the EU launched in October a thorough investigation of the agreement.

“Whilst Arm and Nvidia do not directly compete, Arm’s IP is an important input in products competing with those of Nvidia, for example in datacenters, automotive and in internet of things,” Margrethe Vestager, the European Commission’s executive vice president, said in a statement. Our analysis has shown that Arm could be acquired by Nvidia, which would result in restricted or reduced access to Arm’s IP. This would have distortive consequences for many markets using semiconductors.

China’s state-backed Global Times newspaper stated that the agreement was disturbing and asked regulators for caution.

In October last year, Nathan Benaich (tech investor) and Ian Hogarth (tech investor) were some of the first ones to invest in tech. publicly predict that it will be blocked.

Hogarth told CNBC that “we wouldn’t surprise at all if this was blocked by anybody.” He sold Songkick, his startup, to Warner Music Group, before becoming an angel investor.

CNBC’s Priestley spoke to Gartner this week and said that SoftBank will likely list Arm on the stock exchange if the Nvidia deal fails.

He said, “They will probably try to IPO it.”

There are two possible listing locations for Arm: New York’s Nasdaq and London Stock Exchange. Priestley however said that Arm is not likely to fare well on its own.

Priestley stated that “The problem Arm faces, and this was the issue SoftBank had to face, is how it drives revenue.” It’s great to license IP, but it can be difficult to get it.