Nvidia ARM Acquisition Delayed Due to EU Pause of Investigation
Although Nvidia hopes to complete its acquisition of British chip company ARM within two years, there are still many obstacles that delay the merger.
To say that Nvidia is a powerful and influential force in the tech industry that is putting it lightly. Valued at more than $250 billion, it has surpassed Intel, which will soon become a major new player in the GPU space. With it in such a position, Nvidia tried to buy British chip maker ARM, with the deal starting last September. However, along the merger path has raised many concerns about equal power, and many corporate giants are not satisfied. With the deal recently blocked by the FTC, there are now more obstacles on the way as investigations pause.
According to a report from Reuters, EU regulators have temporarily halted their investigation into Nvidia buy ARM, which is one of the biggest chip deals in history. The pause was introduced at the end of November and, it said, has become a common practice for the likes of the European Commission, especially during the COVID outbreak. It did not say how long the investigation would be held.
This means the deal will also be temporarily delayed along with the EU investigation, which will only hinder Nvidia’s progress in acquiring ARM. Things are looking bleak for a merger as more influential parties want to drop the deal or at least voice major concerns about it. Earlier this year, both Google and Microsoft dispute ARM acquisition. The argument against the deal raises the notion that Nvidia would have full control over a chip company that many customers, such as Samsung, Qualcomm and Apple, depend on.
Things got even more serious a few days ago Federal Trade Commission moves to sue Nvidia, effectively blocking the transaction. Similar to other arguments, concerns were raised regarding how the “green team” could “stifle competition” by owning a consortium of necessary technology and essentially making companies It is more difficult for competitors to implement the technological process while Nvidia retains control.
Despite the setbacks, it’s still business as usual for the California-based tech giant. It seems to be Nvidia interested in launching new products in early 2022, even rebranding RTX 2060 but with 12 GB RAM, a card that originally launched in 2019. Such a push suggests that the company is looking to dislodge new competitor products from AMD and Intel.
The source: Reuters
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