The UK Competition and Markets Authority said on Wednesday that it intends to investigate NVDA Nvidia Corp.,
The planned deal for Arm Ltd. “CMA is likely to consider whether, after takeover, Arm has an incentive to withdraw, increase prices or reduce the quality of its IP licensing services to rivals NVIDIA,” CMA said in a statement. statement. CMA chief executive Andrea Coscelli said in a statement that the investigation would seek to ensure that Nvidia’s agreement for Arm “would not ultimately lead to consumers facing more expensive or inferior products”. A formal investigation begins at the end of this year. Nvidia announced in September that it intends to buy Arm from Softbank Group Corp. in a transaction valued at $ 40 billion in cash and shares. Nvidia shares fell 1.8% on Wednesday morning trading. They’ve lost 4% in the last three months as the S&P 500 SPX,
added 10.5%.