Nvidia’s planned $40 billion acquisition of ARM is facing another challenge. Multiple regulatory bodies are currently investigating the deal to figure out whether or not it should be approved. Currently, Nvidia expects the deal to gain approval and go through in 2022, but it looks like China could hold the deal up.
According to a new report from The Information (pay-walled), China’s antitrust regulator has not started its review of the deal, which will see Softbank selling Arm to Nvidia for $40 billion USD. Nvidia filed the necessary paperwork in May, but it has yet to be evaluated. As reported by Seeking Alpha, this has led to a 2.4 percent dip in Nvidia shares in pre-market trading.
Currently, the Nvidia/Arm merger is being investigated by antitrust bodies in Europe, the UK and the US. China will also need to approve the deal, but there doesn’t seem to be a timeline on when a decision will be reached.
So far, Nvidia’s proposed acquisition of Arm has been met with worry from a number of large tech firms, although others support the acquisition. Nvidia is still eyeing up a 2022 closing date for the acquisition.
KitGuru Says: Nvidia’s acquisition of Arm still needs to be approved and so far, it looks like that approval is taking a bit longer to gain than anticipated. Still, these massive mergers do take time, and a 2022 closing date is still very possible.
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