NVIDIA CEO Huang Renxun in Interviewed by “Financial Times” Acknowledge that the acquisition of Nvidia and Arm is expected to be delayed-this is the result of a regulatory review of the $40 billion (cash and stock) merger. “Our discussions with the regulator are longer than originally thought, so it is delaying the timetable,” Huang told the Financial Times. “This is not a particular delay,” he added. “But we are full of confidence in this transaction, and we believe that regulators should recognize the benefits of this acquisition.”
The initial 18-month time frame for NVIDIA and Arm owner Softbank to facilitate and complete the deal is set to end in March 2022-the optional extension has been postponed to September 2022. The March deadline has obviously passed-Huang Renxun’s interview with the Financial Times at least shows that Nvidia believes that it will not be able to clear the remaining regulatory obstacles soon.
Part of the responsibility may lie with NvidiaHowever, it is not only related to the regulator: the company has not yet submitted the required documents to the European Commission, which will expire in July. The summer vacation means that Nvidia must now wait until September at the earliest to submit the transaction, which will shorten the time available for transaction completion and theoretically may endanger it. In addition, Nvidia only submitted documents to Chinese regulators in June (that is, eight months after announcing the acquisition of Arm), and submitted it to the regulators that Chinese legal experts said it may take about 18 months to make a decision. Strangely, Chinese regulators can already count on a high-profile victim of its antitrust policy: Three years ago, Qualcomm tried to acquire NXP for $44 billion, but the transaction spanned 18 months (plus three Month extension) later failed. ) The deadline set by the two companies.
The Nvidia and Arm deal shook the technology industry when it was announced. Arm’s overall neutrality in its technology has led most industry participants to oppose Nvidia’s acquisition on the grounds that Arm’s technology may be monopolized. The United Kingdom, where Arm was founded, is also creating obstacles and speed bumps for the conclusion of the transaction-Arm’s acquisition has been thoroughly politicized and has become a flag for the United Kingdom to continue to lose its technological influence and corporate leadership in the face of continued foreign acquisitions. assets. The possible threats to the national security of the United Kingdom from the acquisition of Arm have also been fully considered.
No matter how the transaction is conducted, Arm and its holder SoftBank are very likely to stand out from this acquisition attempt.Arm-based products continue to enter the previously exclusive x86 areas, including supercomputer and laptop, Is exploring new manufacturing technologies that may open up a market that is well-known Internet of EverythingMost importantly, if the NVIDIA deal becomes obsolete, SoftBank and Arm seem to have been considering a backup plan: The two companies are considering IPOs to take advantage of the increased valuation of Arm, rather than selling Arm outright.