Nvidia’s planned $40 billion (roughly Rs. 297207 crores) acquisition of a British chip designer has hit a major hurdle with the UK regulator saying the deal could damage competition and required a further lengthy investigation.
Nvidia planned $40 billion acquisition of British chip designer ARM hit a major hurdle on Friday after a UK regulator found it could damage competition and weaken rivals, and required a further lengthy investigation. Struck in September last year, the deal for Britain’s most important technology company by the world’s biggest maker of graphics and AI chips sparked a swift backlash from politicians, rivals and customers. In Britain, it has also become politically charged, with critics arguing that a rise in economic nationalism and greater awareness of the need to own key infrastructure means ARM, owned by Japan’s SoftBank since 2016, should not be sold again. On Friday, Britain’s competition regulator added to the pressure, saying the merged entity could reduce competition in markets around the world and in sectors as large as data centres, the internet-of-things, automotives and gaming. To pass a deal with serious competition implications, the regulator would normally require disposal of the part of the merged business that has the power to harm rivals.
