UK Set to Investigate NVIDIA’s Arm Deal

Teodora Dobrilova
Teodora Dobrilova

Updated · Feb 21, 2022

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UK authorities to look in-depth into Arm’s $40bn takeover, due to competition and security concerns.

The Deal

Last year, NVIDIA announced that it will acquire Arm Limited from SBG and the SoftBank Vision Fund. The transaction was valued at $40 billion.

The merger will bring together NVIDIA’s AI computing platform and Arm’s ecosystem. This way, a premier computing company will be created. It will supposedly accelerate innovation and expand to new markets.

Competition Concerns and Phase Two Investigation

This, however, has caused various concerns, especially among chipmakers. Some claim that this could lead to a “substantial lessening of competition”. Affected markets include the Internet of Things, the automotive sector, gaming applications, graphic cards, etc.

As a result, Digital Secretary Nadine Dorries asked the Competition and Markets Authority (CMA) to begin a phase two investigation.

But according to NVIDIA, the merger will actually help competition and innovation. The company said that it will work together with the UK government to eliminate the issues.

It has issued a statement, explaining: “The phase two process will enable us to demonstrate that the transaction will help to accelerate Arm and boost competition and innovation, including in the UK.”

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Teodora Dobrilova

Teodora Dobrilova

Teodora devoted her whole life to words – reading, writing and trying to be original on social media. She got certified in digital marketing but still feels she’s not cool enough to be an influencer. (We all disagree – she influences the team pretty well.) She finished a master’s degree focused in Literature, Publishing, Mass Media. Her hobbies include traveling, and reading. Teddy hopes that yoga will be the thing to finally teach her some patience and show her the path toward world domination. Maybe modern tech can also help her with that.

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