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. The news was announced in September 2020.
However, to become Arm's parent firm, Nvidia must first obtain the approval of several competition authorities in different countries. Before launching a further investigation, the CMA first of all 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.
The official opening of the investigation which could have been carried out by the European Commission if the United Kingdom did not take the decision to leave the European Union is scheduled for this year.
Assessment of impacts on competitors and consumers
Throughout the process, the CMA will be required to “ assess the potential impact of the merger on competition ”. The British regulator will also be interested in the changes that the merger of the two companies could bring for consumers.
“ We will work closely with other competition authorities around the world to carefully review the impact of the deal and ensure that it does not end up seeing consumers face more products. expensive or of lower quality, ”said CMA Director General Andrea Coscelli.
More than 2000 opponents
The merger between Nvidia and Arm is not viewed favorably 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 argued in particular that the takeover of Arm by Nvidia could lead to job losses. At the same time, he says the UK risks losing its influence. Over 2,000 people including “ senior officials from the electronics and financial industries, some of Arm's founders, members of the UK upper house of parliament, the Cambridge MP, a Nobel laureate, numerous professors and of the Cambridge Cluster ”joined Hauser in co-signing the letter he wrote.
To alleviate apprehensions, Nvidia " has promised to keep the UK-based company, hire more staff and keep the Arm brand ."