Followers | 680 |
Posts | 141212 |
Boards Moderated | 36 |
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
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- NVIDIA Sets Conference Call for First-Quarter Financial Results • GlobeNewswire Inc. • 05/01/2024 09:00:00 PM
- Philips Stocks Soar 47% Following US Deal, Tesla Bolsters Presence in China, and More News • IH Market News • 04/29/2024 11:11:24 AM
- BHP Bids $38.8 Billion for Anglo American; Biden Unveils Historic Micron Technology Deal, and More News • IH Market News • 04/25/2024 11:48:40 AM
- Apple Loses Market Share in China, GM Surges in Pre-Market Following Upward Revisions for 2024 Projections, and More News • IH Market News • 04/23/2024 11:25:34 AM
- U.S. Index Futures Surge While Wall Street Eyes Rebound on Earnings Focus, Oil Prices Slip • IH Market News • 04/22/2024 12:09:47 PM
- Li Auto Stock Drops 7.3% Amid Tesla Price Cuts, Salesforce Retreats from Informatica Deal, and Other Market Updates • IH Market News • 04/22/2024 12:09:21 PM
- Nasdaq, S&P 500 Extend Losing Streaks On Tech Weakness But Dow Advances • IH Market News • 04/19/2024 08:32:14 PM
- Traders May Make Another Attempt At Bargain Hunting • IH Market News • 04/18/2024 01:14:37 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- U.S. Stocks May Move Back To The Upside In Early Trading • IH Market News • 04/05/2024 01:10:21 PM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- U.S. Stocks Close Sharply Lower Following Late-Day Sell-Off • IH Market News • 04/04/2024 08:34:37 PM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- GameStop Shares Tumble 20% in Pre-Market Trading Amid Revenue Decline, Direct Digital Plummets 42%, and More News • IH Market News • 03/27/2024 10:54:47 AM
- Tech Sector Weakness May Weigh On Wall Street • IH Market News • 03/25/2024 01:26:54 PM
- U.S. Stocks Close Mixed On The Day But Sharply Higher For The Week • IH Market News • 03/22/2024 08:40:00 PM
- Looming Fed Announcement May Lead To Choppy Trading On Wall Street • IH Market News • 03/20/2024 01:16:55 PM
- U.S. Index Futures Trade Sideways Amid Anticipation of Fed’s Policy Update; Oil Prices Dip • IH Market News • 03/20/2024 11:17:32 AM
- JPMorgan boosts dividends, Chipotle unveils 50:1 stock split, and Latest News • IH Market News • 03/20/2024 11:15:48 AM
- U.S. Stocks Show Notable Turnaround Amid Rebound By Nvidia • IH Market News • 03/19/2024 08:35:13 PM
- Futures Pointing To Initial Pullback On Wall Street • IH Market News • 03/19/2024 01:22:58 PM
- Unilever Initiates Ice Cream Division Spin-Off and Announces Job Cuts; Berkshire Ramps Up Share Buyback Efforts, and More • IH Market News • 03/19/2024 11:33:10 AM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM