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UK Competition Authorities Verify NVIDIA Purchase of Arm
07.01.2021 [00:04],
Nikolay Khizhnyak

US-based NVIDIA’s acquisition of British processor manufacturer Arm to be tested for violations of UK antitrust laws. This was announced on January 6 by the press service of the Competition and Markets Authority (CMA).

Recall that NVIDIA made an official announcement in September last year about the acquisition of a British chip developer from the Japanese holding company SoftBank for $ 40 billion. The final signing of the deal is expected in 18 months. Approximately how long it will take for regulators in the UK, China, the European Union, and the United States to check if it violates antitrust laws.

The British department noted that the deal will be checked first of all for the possibility of Arm’s desire to “withdraw, raise prices or reduce the quality of its intellectual property licensing services in comparison with competitors of NVIDIA.”. At the same time, the regulator called on to help him in the investigation. The merger of the two companies affects the interests of many countries. The approval should also be given by the antimonopoly authority of China due to Arm’s joint venture with the Chinese company Hopu Investments. CMA noted that it is inviting interested third parties to comment on NVIDIA’s proposed acquisition of Arm.

The regulator separately noted that it cannot assess the impact of the transaction on employment in the country or state production strategy. However, the UK government may “issue a Public Interest Interference Notice if necessary.”.

Arm employs over 6,500 people, including 3,000 in the UK office. The company is a real locomotive of the industry and a gem of Great Britain. In an interview with CNBC last December, Arm CEO Simon Segars said he expects regulators to take a very close look at the deal.

“It must be approved by many jurisdictions around the world. This is a long process. Regulatory bodies need to constantly interact with each other to transfer the necessary information to one or another party, “Segars said at the time.

In the absence of any issues related to violation of antitrust laws, the deal between the companies will be officially closed in early 2022.