Report, Telecom Information, ET Telecom
UK ministers are expected to order an in-depth investigation into Nvidia Corp’s proposed £ 30 billion ($ 40 billion) acquisition of UK chip designer ARM over antitrust and national security concerns, the Sunday Times reported.
UK Digital and Culture Secretary Nadine Dorries is expected to instruct the Competition & Markets Authority (CMA) next week to conduct a “phase two” review of the deal, the report said.
The US company agreed to buy ARM from Japan’s Softbank in September 2020, sparking backlash from politicians, competitors and customers.
ARM technology is used by competing chip manufacturers such as Qualcomm, Samsung Electronics, and Apple to make their own processors.
Chip manufacturers fear that ARM will not retain its neutral player status under Nvidia’s ownership.
Nvidia considers the fears to be unfounded.
Still, the UK’s CMA sounded the alarm over the deal in August when it said the merged company could reduce competition in markets around the world that rely on chip technology.
The government has reviewed the results of the CMA and assessed the potential impact of the agreement on national security.
A full investigation would take about six months, after which the government could block, approve, or let certain companies get away with the takeover.
The Department of Digital, Culture, Media and Sport declined to comment on the Sunday Times report.