UK orders in-depth probe of Nvidia’s Arm acquisition

- Advertisement -

- Advertisement -

  • UK launches six-month probe
  • To check competition, national security implications
  • Delay in sales inquiry by SoftBank
- Advertisement -

LONDON, Nov 16 (Businesshala) – Britain on Tuesday ordered a thorough investigation of Nvidia Corp (nvda.o) into the more than $50 billion acquisition of UK-based chip designer Arm from Japan’s SoftBank over antitrust and national security concerns. was planned.

Digital Secretary Nadine Dorries said Britain’s Competition and Markets Authority (CMA) would investigate the deal over the next six months, with investigations already underway in Europe and China.

“The branch has a unique place in the global technology supply chain and we must ensure that the implications of this transaction are fully considered,” she said.

“The CMA will now report to me on competition and national security grounds and advise on next steps.”

Nvidia, the world’s largest maker of graphics and AI chips, agreed to buy Arm from SoftBank for $40 billion in cash and stock in September 2020, prompting backlash from Arm’s customers, many of whom compete with US buyers. We do.

Arm’s technology is used by chip makers such as Qualcomm, Samsung Electronics and Apple to build their own processors.

Nvidia has resolved to maintain the neutrality that has been central to Arm’s success, with 180 billion chips shipped to date and its technology powering nearly all smartphones.

Britain, however, said that although not all devices using Arm-based chips were classified as critical in their own right, the security and resilience of the wider supply chain was critical to Britain’s national security.

Nvidia said it plans to address CMA’s initial concerns over competition, which the regulator flagged in August, and will continue to work with the British government on the deal.

“The Phase 2 process will enable us to demonstrate that the transaction will help accelerate branching and foster competition and innovation,” a spokesperson said.

The increase in Nvidia’s share price has raised the value of the deal to more than $50 billion.

Reporting by Paul Sandals; Editing by Kate Holton


- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox