EU set to launch formal probe into Nvidia‘s takeover of Arm – FT
Adds background, Nvidia comment
Aug 27 (Reuters) – The European Union is set to launch a formal competition probe into Nvidia‘s (NVDA).O planned $54 billion takeover of British chip designer Arm early next month, the Financial Times reported on Friday, citing two people with knowledge of the process.
The investigation is likely to begin after Nvidia officially notifies the European Commission of its plan to acquire Arm, according to the report.
Britain’s competition regulator said last week Nvidia‘s planned acquisition of Arm could damage competition and weaken rivals, and required a further lengthy investigation.
“This transaction will be beneficial to Arm, its licensees, competition, and the industry. We are working through the regulatory process and we look forward to engaging with the European Commission to address any concerns they may have.” Nvidia said.
Arm did not immediately respond to a Reuters request for comment.
Sources previously told Reuters in June that Nvidia may not be able to meet a March 2022 deadline for closing its deal due to European regulators’ reluctance to consider the case until after the summer holidays.
Arm, currently owned by Japan’s SoftBank Group Corp 9984.T is a major player in global semiconductors, a sector fundamental to technologies from artificial intelligence and quantum computing to 5G telecoms networks. Its designs power nearly every smartphone and millions of other devices.
(Reporting by Ann Maria Shibu, Bhargav Acharya and Anirudh Saligrama in Bengaluru; Editing by Shounak Dasgupta)
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