US Nvidia’s $54bn UK Arm buyout faces EU competition concerns
European Union officials have reportedly voiced competition concerns over US tech giant Nvidia’s purchase of UK chip design company Arm, in the deal’s latest wave of opposition.
The Competition and Markets Authority (CMA) echoed the EU’s sentiment last month, saying the sale raises “serious competition concerns.”
The California-based company is preparing to file for regulatory clearance for the deal in Brussels this week, possibly as soon as Tuesday, the Financial Times first reported.
“It’s not certain the deal will get easily cleared here,” one official claimed, adding that EU regulators are sceptical about Nvidia’s pledge to allow rivals sustained fair access to Arm’s designs following the deal’s completion.
Though, people with direct knowledge of Brussels’ investigation have claimed it is still too early to tell if the deal with be blocked or not.
While Nvidia offered the CMA a concession, urging it would not disadvantage Arm’s licenses by removing access to its technology. However, the competition watchdog did not accept the promise.
“The CMA has been very aggressive. If they are not willing to accept [the] concessions, it will be a matter of trying to convince them until the very end,” one official said. “It will go down to the wire.”
However, the Financial Times reported that the European Commission had yet to be officially notified of the transaction.
Nvidia declined to comment.