European Research Complicates Nvidia’s ARM Purchase

The European Commission, the regulatory body that represents the interests and actions of the European Union, will initiate a formal and in-depth investigation against the potential acquisition of ARM by Nvidia.

According to Reuters, the idea is to assess whether the purchase will in fact generate higher prices, less choice for partners or competitors and reduced innovation, since a semiconductor supplier will be controlled by a manufacturer in the area — especially in a delicate moment like the current shortage of chips.

The two parties involved sent documents and arguments in defense of approval, but the Commission found the evidence insufficient. Nvidia has already commented on the case and said it is willing to collaborate to demonstrate that the acquisition is positive for the industry.

And now?

The European Commission has given a deadline of March 15, 2022 to send the decision, but it can be issued earlier. This is also the approximate deadline for the deal to be closed or not — that is, further delays or denial of approval may even cancel the purchase.

The negotiation was announced in September 2020 and involves around US$ 40 billion, but it depends on the approval of inspection entities around the world to be finalized. In addition to the European Commission, China’s regulation also seems willing to delay or even close the process because of similar concerns.

Reference-www.tecmundo.com.br

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