UK government may prevent Nvidia from acquiring ARM
Nvidia has previously announced that it will spend $40 billion to acquire the chip development company ARM from SoftBank, which is headquartered in Cambridge, England.
Although Nvidia has reached agreements with SoftBank Group and ARM, it will eventually need to obtain regulatory approvals from the United Kingdom’s governments.
The transaction will only be completed after the approval is completed. If the market regulator denies the transaction, it is likely that the entire transaction will eventually be broken.
Nothing is more concerned about this transaction than the British government. ARM was established in Cambridge, England in 1990. In nearly 30 years, ARM has become an industry leader.
At the same time, ARM is also a leading company in the British technology industry and has made great contributions to the British economy, including paying taxes and providing multiple technology jobs for the UK.
There are reports that the British government may be the first to block this transaction because the British government is concerned that the completion of the transaction may have a significant impact on the British economy.
At the same time, the completion of the transaction may also threaten the success of ARM on a global scale. Therefore, the British government believes that the transaction has an adverse effect on many parties.
In particular, Nvidia, as a competitor to the chip manufacturing industry, may threaten ARM’s existing business model and ARM’s ability to provide services to the market.
In response to market rumors, Jensen Huang, the founder, and CEO of Nvidia, also issued a response. Jensen Huang said that Nvidia will maintain customer neutrality after completing the acquisition.
That is, Nvidia will not compete with ARM’s existing customers and potential customers, that is, Nvidia, and will not use ARM’s licensing model to attack competitors.
Jensen Huang also promised not to change ARM’s current business model, that is, ARM only needs to be responsible for chip technology design and license its patents and technologies to other manufacturers.
At the same time, in view of the doubts of the British government, Nvidia also stated that it will not move out of Cambridge, England after the transaction is completed.
In the end, Jensen Huang expressed his confidence to dispel the doubts of governments of various countries and complete the transaction. Currently, the regulatory agencies are still approving and the transaction is expected to be completed within 18 months.