When NVIDIA Announced its plan The acquisition of Arm Ltd., a British semiconductor design company, has attracted the attention of regulators around the world.Today, according to the latest report Bloomberg, NVIDIA’s acquisition of Arm may be blocked by the British government.
As early as October 2020, Nvidia announced that it had reached a final agreement with SoftBank to acquire the largest semiconductor design supplier in the United Kingdom, Arm Ltd., for a total amount of up to 40 billion U.S. dollars. SoftBank is expected to remain a shareholder of Arm, totaling less than 10% of the company Nvidia is trying to acquire.
However, the sheer scale of this transaction has attracted the attention of many regulators around the world. Perhaps the biggest potential threat to the transaction is the British government’s efforts to investigate the transaction and look for any potential national security issues that may occur.
We have previously reported that the European Commission is Potential deal breaker For this acquisition, Nvidia must submit all documents before September this year. In the best case, the paperwork will be processed within 6 months, which means that the transaction may be approved in March 2022. However, experts point out that the best scenario is unlikely to happen.
According to the latest report, the British government has investigated the transaction and evaluated the transaction a few days ago in late July. In the report, the government stated that there are national security issues, which may prevent regulatory agencies from approving the transaction.
Since the investigation is still ongoing and no one has made a final decision that may prevent the transaction, NVIDIA is working with regulators to resolve any issues that may occur. A Bloomberg spokesperson for Nvidia said: “We will continue to work with the British government to complete the regulatory process,” and continued, “We look forward to their problems and hope to resolve any problems they may encounter.”
Regarding any further details of the transaction, we must wait for more information from Nvidia or the regulator overseeing the transaction. Since Nvidia believes that the transaction should proceed smoothly and the company is ready to cooperate with the government, it should provide some security for investors who want to see Nvidia complete the merger.