Microprocessors, Chipsets and Graphics devices

[JohnCM]

Nvidia Warns Its Proposed Acquisition for Arm Will Take Longer Than Expected

Barrons.com
BY Dow Jones & Company, Inc.
8:49 AM ET 08/19/2021
Pierre Briançon

Nvidia Corp. ( NVDA ), the U.S. semiconductor maker, admitted Wednesday that talks with regulators on its $40 billion planned acquisition of U.K. rival Arm Holdings would take longer than expected and may stretch over 18 months.

Nvidia ( NVDA ) announced in September 2020 that it had struck a deal with SoftBank Group ( SFTBF ), the owner of Arm, to create "the world's premier computing company for the age of artificial intelligence."

The deal has since faced opposition from rival chip makers, and scrutiny from regulators in the U.S., China and Europe.

In the U.K., after the competition regulator launched a probe into the deal, the government in April also commissioned a report on its national security implications, and is now inclined to block it, according to media reports.

Nvidia ( NVDA ) CEO Jensen Huang said Wednesday that he remained confident that "regulators should recognize the benefit of the acquisition."

What's Next: Nvidia ( NVDA ) shares fell 2% on the news but were recovering Thursday in premarket trading, as investors turned their attention to the company's upbeat outlook, and its confidence that third-quarter revenue would beat current analysts' expectations.