The acquisition will be looked at more deeply from the perspective of competition law and national security.
Earlier this month, we wrote that it was brought up with the British to prevent the acquisition of ARM, as it could pose a risk to national security. The Competition and Markets Authority (CMA), now the UK Competition Authority Released another report, and concluded that in the event of an acquisition, there is a risk that NVIDIA will restrict access to ARM’s intellectual property to its direct competitors, at their expense. All of this, according to the CMA, could stifle innovation in a number of markets, including the data center, IoT devices, self-driving cars, and gaming hardware sectors.
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NVIDIA has offered to introduce so-called behavioral corrective measures (which could regulate the behavior of a company that integrates ARM), but the CMA said this would not address their concerns.
As a result of the foregoing, a second phase of investigation may be requested soon, focusing on the potential issues identified in the first report. In this model, the British take a deeper look at the acquisition of ARM from the perspective of competition law and national security. The biggest drawback of all this is that detailed investigations can take a very long time, and in September of next year the two parties may decide to terminate the acquisition, as the deal can be canceled without penalty. Moreover, in this case, SoftBank does not have to return to NVIDIA the $2 billion that the Greens will provide for the smooth running of ARM.
If the acquisition succeeds, SoftBank will flee to the underlying issue of shares, which is telegraph According to an earlier report, this could be achieved on the New York Stock Exchange.
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