EU to probe Nvidia’s $54bn ARM bid after concessions fail to allay concerns
US tech company Nvidia’s $54bn bid for British chip designer ARM is set for a prolonged EU antitrust investigation.
Concessions offered last week failed to address competition concerns, three people familiar with the matter said.
This will be the second setback for the California-based tech firm after the UK’s watchdog warned the deal could damage competition and weaken rivals.
A preliminary review by the European Commission is expected to end on October 27, with a four-month investigation set to follow, sources told Reuters.
“The regulatory process is confidential. The transaction will help to transform Arm and boost competition and innovation, including in the UK,” Nvidia Corp, a U.S. technology firm headquartered in Silicon Valley, said.
It is understood to have offered “behavioural remedies” to the Commission, which could mean pledges to take measures to preserve competition.
The tech firm has said it would maintain ARM as a neutral technology supplier in an attempt to relieve concerns from customers including Qualcomm Inc, Samsung Electronics Co Ltd and Apple Inc.