Share Prices & Company Research

Market News

04 Feb 2021 | 09:22

UK and EU open probe into Nvidia's acquisition of Arm

(Sharecast News) - The UK and European Union are set to open an in-depth competition investigation into the $40bn acquisition of Arm by US chipmaker Nvidia. The acquisition of the British chip designer is a concern as some companies that rely on Arm's technology fear they could be disadvantaged once it is owned by competitor Nvidia.

Some rivals were therefore calling for the deal to be blocked.

Jensen Huang, Nvidia's chief executive denied the claims and told the Financial Times: "I can unequivocally state that Nvidia will maintain Arm's open licensing model. We have no intention to 'throttle' or 'deny' Arm's supply to any customer."

According to the FT, officials and advisers in both Brussels and the UK said that the investigation was warranted, given the growing importance of Arm's designs, which are used in almost all smartphone processors as well as many other devices running on low-power chips.

"This deal will be thoroughly investigated [ . . . ] and scrutiny may lead all the way to a prohibition," said one person close to the situation.

The UK government is also concerned about risks to national security, after the digital, culture, media and sport secretary, Oliver Dowden, came under pressure to intervene in the deal.

The deal was announced last September and it is still in early stages. The acquisition could also face scrutiny in the US and China.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.