The planned acquisition of the British semiconductor designing company Arm by Nvidia Corp could present competition issues, indicated Tesla chief executive Elon Musk, according to a report published by the Telegraph reported on Saturday.
The report stated that opposition to the deal has already been submitted to the relevant authorities in the United States by e-commerce giant Amazon and smartphone maker Samsung Electronics.
An in-depth probe into the takeover was launched by the US Federal Trade Commission earlier this year and its findings are expected to be available within the coming weeks, said the report quoting source information.
There were no official comments on the issue from Tesla, Amazon, Samsung and Nvidia.
Reports earlier this week have suggested that an application for approval of the deal could be filed by Nvidia with the European Union anti-monopoly regulator early next month. The proposed deal is worth $54 billion. Reports also indicated that full-scale investigation cold be launched by EU regulators on the deal following a preliminary review.
Founded in 1991, Arm is a supplier of chip architecture. The core business of the British company is to develop propriety chip technologies and then license the intellectual properties to major chip making giants around the world against patent fees.
It is believed that technology developed by Arm is used in most of the mobile phones and tablets of the world while major companies like Apple, Samsung, Qualcomm, and MediaTek have close business cooperation with the British firm.
Arm had almost 90 per cent of the mobile processor market as well as a large share of the autonomous vehicles sector, the company said last September. In 2016, the company was taken over by the Japanese conglomerate SoftBank for $32 billion.
Nvidia has offered to pay $21.5 billion worth of its shares and $12 billion in cash for the British company, including $2 billion paid immediately upon signing of the contract.
SoftBank may also receive an additional $5 billion in cash or stock, the two companies said in a joint statement. And $1.5 billion worth of Nvidia stock will be paid to Arm employees if the performance of Arm in the future reaches a specific target.
“Arm’s headquarters will continue to be located in Cambridge. We will expand and build world-class AI research facilities in this excellent place to support healthcare, life sciences, robotics, autonomous vehicles and other fields of development. And, in order to attract researchers and scientists from the UK and around the world for groundbreaking work, Nvidia will build the most advanced AI supercomputer powered by Arm CPU,” Nvidia founder Huang Renxun was quoted as saying in an effort to dispel any concern about the deal.
(Adapted from AsiaFinanicla.com)