LONDON (Reuters) -Nvidia Corp’s planned $40 billion acquisition of British chip designer ARM looks set to face a lengthy inquiry after a UK regulator found the deal would hit competition and could weaken rivals.
Britain’s Competition and Market’s Authority said on Friday the takeover could lead to “significant competition concerns”.
While Nvidia, the world’s biggest maker of graphics chips and AI chips, had offered remedies to lessen the impact, the CMA did not believe they would alleviate its concerns.
“The CMA found that the merger should be progressed to an in-depth Phase 2 investigation on competition grounds,” it said.
The government will give a fuller response at a later date, which will also include its thinking on any impact on national security. It could refer the deal for a full in-depth inquiry which takes around 24 weeks.
Britain’s government could then block the takeover, approve it or allow it to pass with certain undertakings.
(Reporting by Kate HoltonEditing by William Schomberg)
