Nvidia has not submitted to the EU the review documents required for the acquisition of ARM
Last month, there were reports that Nvidia’s chances of acquiring ARM before March 2022 were getting smaller. On the one hand, British regulators may not consider the acquisition until this fall. On the other hand, Nvidia has not yet submitted all necessary documents to the European Commission, which will delay the approval of the transaction. If the transaction progresses slowly, ARM will be forced to consider IPO.
According to the Telegraph report, an insider who knows about the deal between NVIDIA and ARM said that if the transaction delays and the obstacles set by competitors are difficult to overcome, then IPO is still an option for ARM. Regulatory agencies, including the European Commission, will have a holiday from Monday, July 26, but since NVIDIA has not submitted the required documents to it, the review has not even begun. It is understood that the European Commission will resume work in early September, which means that transaction review work will be delayed for at least one month.
Considering the urgency of the transaction, it is surprising that Nvidia has not submitted appropriate documents to the European Commission, which is even later than the time to submit the application to the Chinese regulatory agency. Even if NVIDIA submits all the required documents immediately in early September, the review time will take at least 6 months, barely keeping up with the time node in March 2022. However, people in the industry are not optimistic about this and believe that this situation is unlikely to happen.
In September of last year, Nvidia announced that it had purchased ARM from SoftBank for $40 billion in cash and stock. At that time, it was expected that the transaction would be completed within 18 months, that is, by March 2022, and this transaction can choose to extend it to September 2022, but until now, the transaction has not been approved by the regulatory agencies of the United States, the United Kingdom, Japan, the European Union, and China. If the final transaction fails, Nvidia will have to pay $1.25 billion in fees.
