Nvidia’s USD 40 billion bid to acquire ARM from SoftBank is increasingly unclear.
From the beginning, the offer, which was first published in September 2020, was indeed opposed by many parties, both from regulators and rival companies. One of the main reasons is related to monopolies.
Regulators from various countries such as the United States, Britain, China and the European Union are also investigating acquisition plans. Similarly, companies like Microsoft, Google and Huawei, which accuse the acquisition will damage the semiconductor industry.
Now the latest news is emerging from the UK government, which is investigating the acquisition through the Competition and Markets Authority (CMA), explaining the national security risks that may arise from the acquisition.
The CMA’s preliminary report was submitted to British Culture Minister Oliver Dowden, who cited the threat to national security from the acquisition, and advised not to grant permission for the acquisition.
There are also other sources who say that the British government will conduct a more in -depth review of the acquisition based on national security.
It is unclear how the acquisition will affect national security. However, it is clear that current semiconductor technology will definitely be considered an important asset, especially if you look at the impact of the current global chip shortage.
Nvidia claims that it will continue to follow the licensing process undertaken by the British government, and is prepared to answer and resolve issues that may arise from the acquisition, which was initially expected to be completed in March 2022.
Meanwhile, the Chinese government is still investigating the planned takeover, which will take 18 months from September 2020. In contrast, European Union regulators have not yet issued a decision, at least until the summer holidays.
This has given rise to speculation that Nvidia will find it difficult to complete the acquisition in March 2022. Although the existing agreement states that the acquisition deadline could be pushed back to September 2022.
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