Nvidia’s $54 billion acquisition bid for Britain’s ARM suffers setback, European Commission offers full scale investigation

With the European Commission opening a full-scale investigation into Nvidia’s $54 billion acquisition bid for British chip designer ARM on concerns that the deal could lead to higher prices, reduced choices and reduced innovation, the world’s biggest maker of graphics and artificial intelligence (AI) chips suffered a setback.

Further, Britain’s competition agency is also probing the deal, warning that it could damage competition and weaken rivals.

“We are working closely with the European Commission through the regulatory process. We look forward to the opportunity to address their initial concerns and continue demonstrating that the transaction will help to accelerate Arm and boost competition and innovation, including in the EU,” said Nvidia’s spokesperson.

In a statement the European Commission said, it would decide whether to approve the deal by March 15.

“Whilst Arm and Nvidia do not directly compete, Arm’s IP is an important input in products competing with those of Nvidia, for example in datacentres, automotive and in Internet of Things,” said EU competition chief Margrethe Vestager, while adding, “Our analysis shows that the acquisition of Arm by Nvidia could lead to restricted or degraded access to Arm’s IP, with distortive effects in many markets where semiconductors are used.”

Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

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