UK Competition and Market Authority (CMA) Announce In-depth Phaser 2 investigation of Nvidia’s plan to purchase Arm. The organization is concerned that Nvidia will have the ability and motivation to restrict its competitors’ access to some of Arm’s technologies, which will give it a significant advantage and lead to a significant reduction in competition (SLC).
CMA CEO Andrea Coscelli said: “We are concerned that Nvidia’s control of Arm may limit Nvidia’s competitors’ access to key technologies, and eventually stifle innovations in some important and growing markets, thereby bringing real benefits to NVIDIA’s competitors. Problem.” “This may eventually cause consumers to miss new products or increase prices.”
To make the purchase proposal of the British authorities even sweeter, Nvidia proposes to invest at least $100 million in the country’s most powerful supercomputer and make additional investments in Arm. However, the CMA stated that “this type of remedy will not alleviate its concerns”, which is why it conducted an in-depth Phase 2 investigation.
CMA In-depth second phase investigation It takes up to 24 weeks and can be extended up to 8 weeks. If everything goes according to plan, CMA will announce its decision on the transaction before late February. If the investigation is extended, the CMA will reach a conclusion in late April.
In Phase 2, the CMA team conducts a detailed inspection to assess whether the merger is expected to result in SLC. If SLC is possible, CMA will make a decision on the remedial measures required. They may include prohibiting transactions or requiring the sale of parts of the business to avoid SLC. After the final Phase 2 report is issued, the CMA has a statutory deadline of 12 weeks, which can be extended by up to 6 weeks to issue orders or accept commitments to implement its Phase 2 remedies.
If the CMA does not prohibit the transaction or require any remedial measures, Nvidia’s acquisition of Arm may be completed in the UK in late February or late April. Nvidia plans to complete the acquisition of Arm by March 2022, with the option to extend to September 2022.
British CMA began to question Nvidia’s proposal to acquire Arm on the grounds of national security In april, When it initiated the first phase of the investigation of the transaction. The second phase of the investigation is the next and final CMA review.
Nvidia Jensen Huang CEO earlier this week Accepted In an interview with the “Financial Times”, said that the acquisition may take longer than expected. Nvidia only submitted the necessary documents to China’s antitrust regulators in June, and they can take up to 18 months to process them. The company will not even submit the required documents to the European Commission (EC) until September. After that, it will take 6 months or more for the EC to review the transaction.
At the same time, some sources close to Arm reportedly told Telegraph Earlier this year, if delays and competitor obstacles proved invincible, then IPO is still an option for Arm.