Nvidia CEO Jensen Huang dressed in a regular leather jacket.
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LONDON – UK competition and markets authority announced on Wednesday that it intends to investigate Nvidia’s proposed acquisition of British chip designer Arm.
Nvidia announced plans to buy the Cambridge-based company from SoftBank for $ 40 billion in September last year, and critics have called on governments and regulators to investigate the deal since then.
The CMA said it invites third parties to express their views on how the deal will impact competition in the UK before launching a formal investigation later this year.
“The chip technology industry is worth billions and is crucial to many of the products we use the most in our daily lives,” CMA Executive Director Andrea Coscelli said in a statement.
“We will work closely with other competition authorities around the world to carefully consider the impact of the transaction and to ensure that, ultimately, it does not result in consumers facing more expensive or quality products. lower, “Coscelli added.
With 6,500 employees, including 3,000 in the UK, Arm is widely regarded as the jewel in the crown of the British technology industry. Its chips power most smartphones in the world, as well as many other devices.
Armaments chief executive Simon Segars told CNBC in December that he expected regulators to “take a good look” at the deal.
“There are many regulatory approvals in many jurisdictions around the world,” Segars said last month. “This is an extracted process. There are a lot of interactions that need to continue with regulators to provide the information they want.”
When the acquisition was announced, Nvidia and Arm said they hoped to complete the deal by early 2022.
Two British technology investors predicted in October last year that the acquisition would be blocked.
Nvidia did not immediately respond to CNBC’s request for comment.