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By Shubhangi Mathur, 2:58 PM ET
Nvidia Corp’splanned acquisition of British chip designer ARM will take longer than expectedas the deal faced a major hurdle on Friday after a UK regulator announced afurther lengthy investigation.
The Britain’scompetition regulator said the merger could hinder competition in marketsglobally and weaken rivals.
U.S. GroupNvidia bought ARM Holdings, a semiconductor and software design company based inCambridge, in September for $40 billion from Japan’s Softbank. The chip designcompany was owned by Softbank since 2016.
Since ARMis a major global semiconductor company, chip firms fear that Nvidia would takeadvantage and use ARM’s innovations for its company rather than distributingthem in the market.
we're concerned that Nvidia controlling ARM couldcreate real problems for Nvidia's rivals by limiting their access to keytechnologies, and ultimately stifling innovation across a number of importantand growing markets, said Andrea Coscelli, head of Competition and MarketsAuthority, reported Reuters.
Another criticism of the deal is the threat to innovation inthe most important industries of the economy.
Nvidia recentlysaid that the deal is taking longer than expected to win the necessaryapprovals. The deal was expected to wrap by March next year but the deadline isnow shifted to September next year.
(Withinputs from Reuters)
PictureCredits: Reuters