Nvidia was tipped to face a European roadblock to a proposed acquisition of UK-based chip designer Arm, potentially adding further fuel to a fire of opposition from competition regulators and rival technology outfits.
European Commission (EC) information shows it set a provisional deadline of 27 October to officially respond to an application Nvidia submitted early last month. It confirmed reports the chip company had offered various commitments around preserving competition last week.
But Reuters today (12 October) reported the EC is unconvinced by the arrangements Nvidia offered and is likely to move to a full-scale investigation of the deal.
The news agency’s sources explained the EC had not asked rival chip companies or customers to respond to Nvidia’s pledges, which Reuters stated suggested the regulator was dissatisfied.
If the report proves accurate it would be another hurdle to Nvidia’s increasingly contentious move for Arm. The greatest opposition currently stems from the UK Competition and Markets Authority, though the proposed takeover also faces regulatory scrutiny in the US and China.
US authorities have reportedly faced pressure to block the deal from big names including Google and Microsoft, while rival chip companies Intel and Qualcomm expressed an interest in Arm if the Nvidia move falls short.
During its Q2 earnings call, Nvidia CFO Colette Kress admitted the regulatory process was taking longer than expected, but remained bullish the “benefits of the acquisition” would ultimately shine through.Subscribe to our daily newsletter Back