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The acquisition of ARM may stop in the European Union

The acquisition of ARM may stop in the European Union

NVIDIA and ARM have little time left to fill in the missing documents.

Back in the fall of last year, NVIDIA announced that it would buy ARM for $40 billion, but the UK limited the acquisition and could now run into trouble in the EU. Reuters mentioned.

As is known, the two companies originally planned to close the acquisition in March 2022, but this deadline was optionally extended until September. On the other hand, if the deal is not managed by then, either party can terminate the agreement without penalty under the prior agreement.

The problem at the moment is that the EU will look closely at the expected economic impacts, which will require additional documentation. If ARM and NVIDIA do not submit the necessary documents to the EU competition authorities before the summer break, they can replace them in the fall at the earliest, in the meantime the European Commission will not take any decision, the whole case will not go The chances of not obtaining the permit by March increase. Moreover, the optional September target date could be jeopardized, and from there one company at any time may decide to cancel the deal instead. Moreover, in addition to the UK and the EU, China’s competition authority, which promises to be by far the biggest hit, has yet to be persuaded, and the case is progressing rather slowly in this regard.

Perhaps because of the above, Cristiano Amon, CEO and CEO of Qualcomm, has already told telegraph That if ARM had an independent future, in addition to Qualcomm, many interested parties and companies would invest in the company if the NVIDIA takeover attempt failed. He considers this to be conceivable through a consortium if ARM eventually becomes a publicly listed company.

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For now, it’s hard to know what the end of the story will be. It is certainly in the interests of both parties to close the acquisition as quickly as possible, because in the event of uncertainty, only ARM will lose customers. Precisely for this reason, if the acquisition is not completed in the foreseeable future in the fall of the following year, the parties may become uniformly interested in canceling the entire transaction.

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