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NVIDIA's Arm acquisition may be derailed by European summer vacation

NVIDIA GeForce RTX 3080
NVIDIA GeForce RTX 3080 (Image credit: Harish Jonnalagadda / Windows Central)

What you need to know

  • NVIDIA put $40 billion on the table to acquire Arm.
  • The acquisition's timeline keeps stretching as roadblocks crop up.
  • The newest roadblock is European summer vacation.

Regulatory bodies from the U.S., China, and Europe all need to give speedy approval for NVIDIA's Arm acquisition if the RTX wellspring is to proceed with its purchase in a timely fashion as it previously planned. However, it looks like the most dreaded of roadblocks is about to stretch NVIDIA's plans out longer than anticipated. That roadblock is, of course, European vacation schedules.

According to The Information (opens in new tab), both companies may not be on track to file their deal's approval request on time in Europe, meaning the European Union's antitrust regulator might not receive it before Europe's big summer vacation months (via Reuters). In short, once June ends, there's no use submitting anything until September.

That'd put months of delay on a plan that's already having regulatory issues. NVIDIA wants to get this deal in the bag by March of 2022, but setbacks keep mounting. If March 2022 arrives and no deal is set in stone and fully equipped with regulator approvals, the backup deadline is September 2022. After that, either company can opt out of the agreement.

What will happen is anyone's guess. NVIDIA's CEO remains confident that the deal will work out, at least when it comes to what he says in public. But that confidence may be a facade, as there is no man or organization in a rush that doesn't clench up at the thought of a European summer.

Robert Carnevale is the News Editor for Windows Central. He's a big fan of Kinect (it lives on in his heart), Sonic the Hedgehog, and the legendary intersection of those two titans, Sonic Free Riders. He is the author of Cold War 2395. Have a useful tip? Send it to robert.carnevale@futurenet.com.

12 Comments
  • I honestly don't blame Europe (or China or other countries) for wanting to give their citizens a mass break every once in a while. It's not particularly efficient, but Americans work way too much (largely by choice but still).
  • And that choice can't be considered a fully independent, uninfluenced choice either.
  • That "choice" comes into play when they're choosing whether they want to keep their job or get replaced by another person who's more readily willing to be a workaholic. Is it a choice? Yeah. Just like choosing between feeding yourself and starving to death is, in some aspect, a choice. I, for one, have big respect for the EU (by and large) for not forcing its countries' citizens to have to make that choice, unlike the U.S. (moreso a reply to Andrew's comment, but also reiterating that Derpity has a strong case)
  • No, it mostly is "independent" (as in, not people scraping by working 3 jobs). The high work hours come mostly from relatively high-income people. Higher-income people in Europe work much less.
  • At the same time have we in Europe never heard of a government shutdown ;)
  • That's because a) you tend to have unicameral parliamentary governments, which encourage the formation of multiple parties (more than two or three), so that if there's paralysis it can trigger an election (by a party in the governing coalition bailing for example), and b) your right-wing parties aren't obsessed with the "size of the government" (and lucky you, you don't have Ted Cruz), and c) (most importantly) maybe no other country than America has a rule that says the legislature has to pass a law to raise the debt limit. But last time I checked you in Europe have heard of lots of other bad things. It's not like you've never seen political crises and persistent government paralysis. And Hungary is still part of the EU for some reason ...
  • The chinese literally have no choice but to work. The choice isn't starvating, though, but execution. Ssk the Uighurs. High work hours in the US come from two directions: people combining multiple part time jobs for being able to secure full time employment and higher-end salaried staff with task dependent jobs facing "crunch time". Thing is, the big productivity gap between the US and the continentals is *not* from the work hours disparity. It dates back to the 80's wave of manufacturing automation, the 90's computerization of white collar work, the aughts' wave of outsourcing low end jobs, and the teens' wave of additive manufacturing/3D printing. That last one is still ramping up but US manufacturing productivity is getting cheaper than even chinese slave labor. And ridiculously sophisticated; 3D printing of complex metal components has reached the point where a company (Relativity Space) is 3D printing orbital rockets and engines and SpaceX produces the most advanced rocket engines there in 48 hours. Also, look up "Tesla Gigapress". And to top it off, there is à second wave of robots coming, driven by AI, making them semiautonomous. Look up the Boston Dynamics dancing robots video. All those hard warehouse jobs people gripe over? They won't be an issue much longer. The jobs will be gone by tge end of the decade. 20 years ago, think tanks projected the US would have a massive shortage of low and midrange jobs and would require massive migration of unskilled labor. Like most of those long term projections they were totally wrong; what is already developing is a shortage of midrange jobs and an even bigger shortage of *skilled* and tech-trained workers. That is what's driving the new wave of automation: the educational system isn't producing tbe skilled technicians and crafters needed to fill the newly emerging midrange. There's millions of unfilled jobs at the mid to high 5-figure income range and a shortage of qualified applicants. That is creating a big pool of unskilled labor that depresses salary growth and is going to explode into a massive glut by 2030.
    All of which will boost US net productivity through the roof.
    Things are about to get...interesting.
  • @fjtorres The education system in the US is chronically and deliberately underfunded. Anything that is chronically underfunded this long - crosses the threshold of deliberate action at one one point. Otherwise the other explanation is total and utter incompetence at all levels, which frankly is not true. As that would effectively mean teachers and underfunded schools have done nothing to resolve this issue - which again is completely untrue. Therefore the education system in the US is deliberately underfunded. Lastly, more importantly thank you for mentioning the plight of the Uighurs.
  • I think nobody could be this bad on purpose. They would be afraid of being exposed.
    This is all cluelessness.
    (Not underfunding, though. Some of the not-as-bad schools work with modest means, compared to the bag of gold catapult districts. Priorities matter.) The core problem is the whole "teaching is teaching" mantra that requires teaching certificates and sends english lit or phys ed grads to teach high school chemistry of algebra. And then there is the compensation model that *requires* the best teachers quit teaching and become paper pushers to get better pay.
    What was the line?
    If any nation imposed that system on another it would be considered an act of war?
    And tbzt was decades ago
  • Is that a new National Lampoon movie?
  • Haha, might as well be.
  • This acquisition by Nvidia needs be barricaded by several tonne breeze blocks and thrown into the darkest of depths of the Mariana Trench.