The UK government was tipped to open an in-depth probe of Nvidia’s proposed acquisition of Arm on national security and competition grounds, placing yet another hurdle in-front of the proposed tie-up.
UK newspaper The Sunday Times reported yesterday (14 November) the country’s secretary of state for digital, culture, media and sport Nadine Dorries was set to instruct the Competition and Markets Authority to undertake a detailed assessment of the proposed $40 billion deal. It follows an initial report published by the authority in July.
Nvidia’s attempt to buy Arm was announced 14 months ago and is currently the subject of a detailed investigation by the European Commission, which is working to a March 2022 deadline.
Authorities in the US and China also have to clear the acquisition, which has reportedly faced criticism from tech giants including Google and Microsoft.
Chip design company Arm is headquartered in the UK, but owned by Japanese conglomerate SoftBank.
During Nvidia’s Q2 earnings call CFO Colette Kress bemoaned the slow progress of discussions with regulators. Its next financial statement is scheduled for Wednesday (17 November) alongside an associated investor call, when a further update on progress of the deal could be disclosed.