A month ago we reported that NVIDIA was planning to acquire Arm from SoftBank for $40 billion.

Today the news broke that the UK government may block the deal, with the Culture Secretary considering asking the Competition and Markets Authority to investigate the deal.

A spokesman for the department noted:

‘Arm is an important part of the UK’s tech sector and makes a significant contribution to the UK economy. While acquisitions are primarily a commercial matter for the parties concerned, the Government monitors these closely and when a takeover may have a significant impact on the UK we will not hesitate to investigate further and take appropriate action.’

The news comes on concern that the deal could lead to job losses in the UK and could threaten ARM’s global success.

‘We have precious few technology champions,’ said former deputy prime minister Lord Mandelson. ‘Yet with Arm it seems the Government is prepared to sit and watch as Nvidia potentially rides roughshod over Arm’s business model and its ability to supply the marketplace.’

Nvidia for its part said they would leave ARM headquartered in Cambridge and maintain their open-licensing model and customer neutrality.

The proposed transaction is subject to customary closing conditions, including the receipt of regulatory approvals for the U.K., China, the European Union and the United States and completion of the transaction is expected to take place only in approximately 18 months.

via thisismoney

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