The UK Competition and Markets Authority has identified national security threats that may arise from the merger.
The British government is considering the possibility of blocking the forty-million deal for the acquisition by the American company Nvidia of the British Arm Ltd due to a possible threat to national security, writes Bloomberg.
According to Nvidia, a regulation process is underway with the UK government.
“We look forward to their questions and hope to resolve any issues that may arise,” Nvidia officials told Reuters.
Arm, which is currently owned by Japanese financial firm SoftBank Group Corp, is a major player in the global semiconductor market for artificial intelligence, quantum computing, 5G, and more. The company’s developments are used in virtually all smartphones and millions of other devices.
Last month, the Competition and Markets Authority (CMA) sent its report to the UK government on the completion of the first phase of its investigation. In the report, the CMA expressed concern that the sale of Arm to Nvidia could pose a threat to national security.
Most likely, due to the possible threat, the British government will conduct a more detailed investigation of the merger of the two companies.
In April 2021, the UK government announced the involvement of the national security services in the investigation of the deal. The CMA was tasked with assessing its potential impact on competition, jurisdiction and safety.
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