UK regulator to look into Nvidia’s takeover of Arm

The UK Competition and Markets Authority (CMA) today said it will begin examining a deal that could result in Nvidia becoming the new owner of UK-based Arm Holdings. Recall that Nvidia’s agreement with SoftBank Group Corp and SoftBank Vision Fund, which now owns Arm Holdings, was announced in September last year.

The deal is estimated at $ 40 billion. The parties expect to complete it within 18 months from the date of the announcement. Of course, for this they need to obtain the approval of the regulatory authorities of all countries whose interests are affected by the takeover, and to fulfill other conditions necessary in such cases.

“The CMA is likely to consider whether Arm will have an incentive after the takeover to revoke licenses, raise prices or reduce the quality of IP licensing services in relation to Nvidia’s competitors,” the source said.

The source does not report the terms of consideration.

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