NVIDIA’s ARM purchase may be blocked by UK government. The moment when NVIDIA‘s purchase of ARM went official, we knew that this merger would face approval problems from the world’s leading competition regulators.
According to the latest reports in the British press, the UK government is preparing to intervene and block the acquisition, for the time being under the sole threat of considering it necessary, with the argument that the purchase of NVIDIA could not only endanger the jobs of its citizens but also threaten the country’s general economy.
- ARM will no longer support 32-bit software in 2022
- Huawei will launch an intelligent display for cars with HarmonyOS
- It’s official: NVIDIA buys ARM for 40 billion dollars
“Arm is an important part of the UK’s tech sector and makes a significant contribution to the UK economy. While acquisitions are primarily a commercial matter for the parties concerned, the Government monitors these closely and when a takeover may have a significant impact on the UK we will not hesitate to investigate further and take appropriate action.” said the UK government.
In addition, NVIDIA’s acquisition of ARM could face similar scrutiny from other regulators in the United States and the European Union, as it would give NVIDIA a competitive advantage over its rivals. The potential for exploiting this to the detriment of ARM’s rival customers is too great to ignore.
NVIDIA, for its part, has pledged to maintain the status quo in regard to ARM’s business model and has even committed to making the UK a global center of IA research and excellence that could help strengthen the country’s economy and reputation. However, some UK officials don’t believe this is the case.
Beyond the 40 billion dollars, we must be clear about what this purchase represents in terms of market and intellectual property, in addition to other contributions and value in the long term, such as Apple’s current relationship with the company, being decisive in the arrival of their new customized processors. Now we will wait for the news, but it looks like NVIDIA’s ARM purchase may be blocked by UK government.