Europe set to extend investigation of Nvidia-ARM deal

October 12, 2021 // By Peter Clarke
Europe set to extend investigation of Nvidia-ARM deal
A deal for Nvidia to acquire processor licensor ARM Ltd. (Cambridge, England) looks set to face an extended EU antitrust investigation, according to a Reuters report. The report also values the deal at $54 billion.

Concessions offered by Nvidia have failed to address concerns that Nvidia – a customer of ARM – would have an advantage over other licensees, Reuters said referencing unnamed sources. The official deadline for the European Commission to end its preliminary review is now October 27, but it seems that a four-month investigation into the deal is now set to follow.

Reports also now refer to a $54 billion deal, a significant increase from the $40 billion price tag originally put on the deal (see ARM sale to Nvidia agreed at $40 billion ).

News of the European Commission's extended investigation comes a few months after the UK decided to extend its own investigation into the deal and include consideration of national security as well as competition (see UK intervenes in Nvidia-ARM deal on national security grounds ).

Nvidia is thought to have made additional concessions to European authorities about keeping ARM independent and preserving competition.

The European Commission is now likely to go to rivals and customers of Nvidia and ARM and seek opinions in the next stage of the investigation. Many ARM licensees are thought to be opposed to the deal although Broadcom, MediaTek and Marvell are said to be in favour.

The deal is also likely to depend on Chinese regulatory approval. A previous major semiconductor deal – Qualcomm's bid to takeover NXP Semiconductor – failed in 2018 when China remained quiet as the time for the deal ran out.

In general, for such deals, the longer regulatory investigations drag on the less likely successful completion becomes.

Related links and articles:

www.nvidia.com

www.arm.com

News articles

UK intervenes in Nvidia-ARM deal on national security grounds

Europe set to examine Nvidia-ARM deal

Jensen Huang's defence of the Nvidia-ARM deal

ARM sale to Nvidia agreed at $40 billion


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