Arm Ltd 40 billion deal is under risk

Nvidia stocks dropped

Based on the information released on Monday, the British competition regulator received an order from the Department for Digital, Culture, Media, and Sport to inquire into the background of the deal and report by midnight on July 30. As the market opened in New York, Nvidia stocks dropped 1.8%.

Arm Ltd 40 billion deal is under risk

Arm is the most valuable British tech company, and its expected acquisition is now under inquiry by the Competition and Markets Authority. It aims at clarifying whether Arm might lift prices or harm licensing services to Nvidia’s opponents. Nvidia has announced that the headquarters of Arm, which currently belongs to Japanese SoftBank Group Corp., will stay in Cambridge.

Nvidia claims that they do not believe this deal can cause any material problems concerning national security. They are going to keep on cooperating with the UK authorities as it has been the case since the transaction was announced.

decrease in Nvidia Corp stocks

The DCMS mentioned the crucial meaning of semiconductors for a huge variety of techs yet also emphasized their importance for the UK’s critical infrastructure, defense, and tech solutions used in the national security field.

Digital Secretary Oliver Dowden declared the UK authorities’ adherence to supporting the local technology industry and foreign investors but also noted it was logical to attentively look through the consequences of the deal in the context of national security.

As Arm supplies its chips almost to the whole tech industry, its neutral position has already stirred worry about the transaction because Nvidia is known as a direct rival to Arm’s customers, including AMD, Qualcomm, and Intel.

In the U.S., the Federal Trade Commission has also addressed the takeover and already turned to third parties for corresponding information.

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