What you need to know
- The UK government issued a public interest intervention notice about NVIDIA's proposed acquisition of Arm Limited.
- The UK's Competition and Markets Authority will prepare a report on the transaction by July 30, 2021.
- The government will then decide if it needs to take a further in-depth look at the proposed transaction.
NVIDIA announced plans to acquire Arm Limited for $40 billion last September. The transaction has been approved by the board of directors of NVIDIA, SoftBank, and Arm but will face an in-depth probe from the UK government. The UK government issued an official notice of a probe into the proposed acquisition.
Oliver Dowden, secretary of state for digital, culture, media, and sport issued a public intervention notice (PIIN) the states he is intervening in the sale on the grounds of national security. This intervention does not mean that the deal is dead, though it could potentially affect the proposed deal. It means that the UK's competition authority will gather relevant information and create a report regarding the proposed transaction.
Dowden states (via The Guardian):
The Competition and Markets Authority started gathering preliminary information about the proposed deal in January 2021.
The report has to be completed by July 30, 2021. Dowden will then submit the report and decide if the proposed transaction requires a more in-depth investigation.
This isn't the first roadblock that NVIDIA has run into regarding its proposed acquisition of Arm. Microsoft, Google, and Qualcomm reportedly complained to US antitrust regulators regarding the deal back in February 2021.
NVIDIA's CEO Jensen Huang seems confident that the deal will go through. Huang told the press (via VentureBeat):
As with most major transactions of this size, we'll have to wait until regulatory bodies weigh in and make decisions before anything is final.
Sean Endicott brings nearly a decade of experience covering Microsoft and Windows news to Windows Central. He joined our team in 2017 as an app reviewer and now heads up our day-to-day news coverage. If you have a news tip or an app to review, hit him up at email@example.com (opens in new tab).
I think the headline is meant to be read "UK Government publicly asserts that it expects its bribe payment post haste"
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