Britain initially vetoed NVIDIA’s acquisition of ARM: merger stifles innovation

NVIDIA spent 40 billion US dollars to acquire ARM from SoftBank, and now it seems that the system is getting more and more elusive. According to media reports, the UK Competition and Markets Authority (CMA) rejected the transaction in its first round of opinions, believing that the merger will stifle innovation.

 

The opinion pointed out that we are worried that NVIDIA’s control of ARM will cause trouble for competitors because it limits the acquisition of key technologies and will eventually stifle many important innovations in the growing semiconductor market. This may cause consumers to miss new products or increase prices.

 

Regarding the preliminary veto of the British side, NVIDIA said it is still seeking opportunities to communicate and resolve the other side’s concerns.

 

At this week’s financial report meeting, NVIDIA CEO and CFO both stated that the plan to acquire ARM within 18 months (before March next year) is shelved and it is expected to take longer. Even if NVIDIA finally succeeds in breaking through the barriers in the UK, industry analysis will also face considerable resistance in the EU and China’s antitrust agencies.

 

It is said that SoftBank’s maximum grace period for NVIDIA is before December 2022. If the transaction cannot be completed, it will promote the listing of ARM.

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