Nvidia Asks Chinese Regulators to Approve $40 Billion Arm Deal: Report

The deal was designed to reduce companies' incentives to shift profits to low-tax offshore havens.

By Reuters | Updated: 8 June 2021 12:49 IST

Nvidia Asks Chinese Regulators to Approve $40 Billion Arm Deal: Report

The UK government said it will look into the national security implications of Nvidia's purchase

Highlights

The US FTC had opened an in-depth probe into Nvidia's agreement
Nvidia said last month it expects to close Arm acquisition by March 2022
Nvidia struck a deal with Japan's SoftBank in September 2020

Nvidia has submitted an application to Chinese competition regulators to review a $40-billion (roughly Rs. 2,91,290 crores) takeover of UK chip designer Arm, the Financial Times reported on Tuesday, citing people familiar with the matter.

The application was made in recent weeks and sets in motion a period of scrutiny that could take up to 18 months, according to Chinese antitrust lawyers, the report added.

Nvidia said last month it expects to close the Arm acquisition by March 2022, after having struck a deal with Japan's SoftBank in September 2020.

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In February, Bloomberg News reported that the US Federal Trade Commission had opened an in-depth probe into Nvidia's agreement to buy Arm.

In April, the UK government said it will look into the national security implications of Nvidia's purchase. Digital minister Oliver Dowden said he had issued a so-called intervention notice over the sale of Arm by Japan's SoftBank to Nvidia.

"As a next step and to help me gather the relevant information, the UK's independent competition authority will now prepare a report on the implications of the transaction, which will help inform any further decisions," he said.

© Thomson Reuters 2021

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