Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Monday, April 19, 2021 11:56:56 AM
By: MarketWatch | April 19, 2021
• Government intervention comes months after introduction of new powers to prevent overseas companies from buying sensitive U.K. assets
The U.K. has opened a formal investigation into Nvidia’s $40 billion takeover of chip designer Arm, after the government said the deal could have national security implications.
Digital secretary Oliver Dowden on Monday issued a public interest intervention notice relating to the proposed deal and requested that the U.K.’s Competition and Markets Authority (CMA) prepare a report on the implications of the deal.
“Following careful consideration of the proposed takeover of Arm, I have today issued an intervention notice on national security grounds,” Dowden said in a statement.
“We want to support our thriving U.K. tech industry and welcome foreign investment, but it is appropriate that we properly consider the national security implications of a transaction like this,” he added.
Shares in Nvidia NVDA, -3.01% fell more than 2% in early trading on Monday.
Santa Clara, Calif.-based Nvidia struck a deal with Japan’s SoftBank Group 9984, -0.74% in September 2020 to buy Arm, in a move designed to transform the global semiconductor landscape. Arm licenses its chip designs to companies including Apple AAPL, 0.27%, Amazon AMZN, -0.70%, Samsung, and Qualcomm QCOM, -2.09%, which use these chips to power device processors globally.
As a neutral supplier, Arm supplies critical chip technology to a variety of customers, including Nvidia’s rivals, and Nvidia has pledged not to change this business model. Nvidia has also promised to add its own technology to the portfolio of intellectual property that Arm can license.
Critics have also warned that Nvidia, which in July 2020 overtook Intel INTC, -1.73% as the most valuable U.S. chip maker by market capitalization, would become too dominant if the Arm acquisition is approved.
The CMA had already launched a standard investigation into the deal in January, saying it was “likely to consider whether, following the takeover, Arm has an incentive to withdraw, raise prices or reduce the quality of its IP licensing services to Nvidia’s rivals.”
The competition watchdog has until July 30 to complete and submit its report to the digital secretary, who will either give the takeover the green light, approve it with certain conditions, or refer it for further scrutiny, either on public interest and competition grounds or on public interest grounds alone.
A spokesperson for Nvidia said the company didn’t believe the transaction poses any material national security issues. “We will continue to work closely with the British authorities, as we have done since the announcement of this deal,” the spokesperson added.
The U.K. intervention in the deal comes just five months after the government introduced new powers to prevent overseas companies from buying the country’s sensitive assets, amid growing concern about the impact of China’s growing economic power.
Under the National Security and Investment Bill, companies will have to notify the government about proposed deals in 17 sectors deemed of strategic importance, including computer processing units and artificial intelligence. Ministers were also given the power to scrutinize the acquisition of assets and intellectual property, as well as companies themselves.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent NVDA News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/21/2024 01:14:53 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/21/2024 01:13:45 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/21/2024 01:11:52 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/21/2024 01:11:08 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/21/2024 01:10:31 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/21/2024 01:09:29 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/20/2024 08:34:26 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/20/2024 08:27:54 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/20/2024 08:01:53 PM
- Nike Shares Surge 7% Pre-Market as Elliott Hill Becomes CEO; FedEx Shares Tumble 13% After Profit Miss • IH Market News • 09/20/2024 10:02:58 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/19/2024 09:12:05 PM
- Meta Strengthens Child Privacy on Instagram; Google Overturns $1.7 Billion Antitrust Fine; Snap Updates Spectacles • IH Market News • 09/18/2024 10:13:07 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/16/2024 08:22:22 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/13/2024 08:36:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2024 12:04:47 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/12/2024 08:22:35 PM
- U.S. Stocks May Lack Direction Following Yesterday’s Turnaround • IH Market News • 09/12/2024 01:10:11 PM
- Norfolk Southern CEO Fired, Ryanair Lowers Fare Forecast, 23andMe Considers Acquisition Proposals • IH Market News • 09/12/2024 10:02:29 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/11/2024 08:28:31 PM
- U.S. Stocks Recover From Early Sell-Off To Close Sharply Higher • IH Market News • 09/11/2024 08:25:39 PM
- GameStop plunges 11% on stock offering, DJT drops post-debate, GSK fails shingles vaccine trial • IH Market News • 09/11/2024 10:25:41 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/10/2024 10:52:09 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/10/2024 08:20:29 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/09/2024 08:27:31 PM
- Remark Holdings to present at Oracle Cloud World 2024 as part of the Data and AI Pavilion accelerated by NVIDIA • PR Newswire (US) • 09/09/2024 01:00:00 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM