Nvidia's acquisition of ARM may be completely ruined: regulators in four countries intend to veto it

Latest update time：2021-10-15 16:25

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Nvidia's acquisition of ARM may ultimately fail as the deal faces increasingly slim chances of gaining regulatory approval, according to two people familiar with the matter.

Last September, Nvidia reached an agreement with SoftBank to acquire British chip designer ARM from SoftBank for about $40 billion. If the deal goes through, it will be the largest semiconductor deal in history in terms of dollar value, and it will create the largest chip company in the West.

If the deal is approved, it will reshape the global chip industry. For this reason, it has been under regulatory review for more than a year. Today, there is news that the EU antitrust regulator will launch a comprehensive investigation into the deal. This means that the antitrust review will not end soon.

Another person familiar with the matter said that at the same time, US antitrust regulators are also interested in blocking the deal in court. The person familiar with the matter said that the US Federal Trade Commission (FTC) antitrust lawyers recently discussed with opponents of the deal whether to sign an opposition statement to block the deal in court. It is not clear whether any company has agreed to sign the statement, but this shows that the FTC is open to blocking the deal.

The UK regulator was the first to review the deal. In August this year, it was reported that the UK government was considering blocking Nvidia's acquisition of ARM due to potential risks to national security.

The UK's antitrust department, the Competition and Markets Authority (CMA), said the deal raised serious competition concerns and could stifle innovation in multiple markets, including data centers, gaming, the Internet of Things and self-driving cars.

Analysts say that in any case, the deal may take at least a year to come to fruition, far longer than the parties initially expected.

When Nvidia announced the deal, the purchase price was about $40 billion, but now, Nvidia's stock price has soared 70%, increasing the size of the "stock plus cash" deal to $55 billion.

There were also reports that if the deal was blocked by regulators, SoftBank might seek to spin off ARM for a separate listing. But people familiar with the matter said that SoftBank now believes that it is unlikely to get the same valuation if ARM is spun off as an independent listed company.

Source: Sina Technology

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