UK regulator to open investigation into ARM takeover soon

The UK Competition and Markets Authority or the Competition and Markets Authority (CMA) recently announced their intention to investigate the acquisition of Arm Holdings. As a reminder, Nvidia Corporation has decided to buy the British chip designer, owned by the Japanese group Softbank for 40 billion dollars. The news was announced in September 2020.

However, in order to become Arm's parent company, Nvidia must first obtain the approval of several competition authorities in different countries. Before launching a further investigation, the CMA first wishes to know the opinions of the competitors on the acquisition of Arm. “Interested third parties” are therefore free to express themselves on the subject.

Photo by Kaitlyn Baker - Unsplash

The official opening of the investigation which could have been carried out by the European Commission if the United Kingdom has not taken the decision to leave the European Union is scheduled for this year.

Assessment of the impacts on competitors and consumers

Throughout the process, the CMA will be required to "assess the impact potential of the merger over the competition. ”The UK regulator will also look at the changes that the merger of the two companies could bring for consumers.

" We will work closely with other authorities of thecompetition around the world to carefully consider the impact of the agreement and ensure that the end result will not be that consumers are faced with more expensive or lower quality products, ”said the CEO of CMA, Andrea Coscelli.

More than 2000 opponents

The merger between Nvidia and Arm is not seen well eye by many people. Arm co-founder Hermann Hauser was the first to voice his opposition. He also tried to prevent the sale by writing an open letter to the Prime Minister.

Hauser notably argued that the acquisition of Arm by Nvidia could cause losses jobs. At the same time, he says the UK risks losing its influence. Over 2,000 people including "senior officials in the electronics and financial industries, some of the founders of Arm, members of the upper house of the UK parliament, the MP for Cambridge, a Nobel laureate, many professors and the Cambridge cluster ”joined Hauser in co-signing the letter he wrote.

To ease apprehension, Nvidia "has promised to keep the UK-based company, hire more staff and keep the Arm brand."