Aviva acquisition ARM trading again variable! Britain’s antitrust authorities will investigate it

The competition and market authority (CMA), the uk’s antitrust division, said today it would investigate the $40 billion acquisition ARM uk chip design company.

CMA states:

we may assess whether ARM have the incentive to stop providing IP licensing services to avida competitors, or to increase the authorized price and reduce the quality of service if the transaction is completed.

Aviva said it would continue to operate ARM as an independent subsidiary, using “customer neutrality” and “open licensing” models. If these companies are willing to pay the fee, they can get a license, even if they are direct competitors of Avida.

And last September, Nvidia agreed to buy ARM. from Softbank Corp. for about $40 billion If the deal is done successfully, it will be the largest semiconductor deal ever, in dollar terms, and it will create the largest chip company in the West.

In response, analysts said at the time, the deal is clearly not “routine “, believe that individual national regulators will evaluate this.

Opposition to the deal is particularly strong in Britain. ARM co-founder Hermann Hauser said it was an absolute disaster for cambridge, britain and europe. One of his main concerns is that Nvidia may move ARM headquarters at some point in the future or reduce the size of ARM staff.

Hermann Hauser also said nvidia would destroy the ARM business model, which involves delegating chip design to about 500 other companies, including several that compete directly with nvidia. Therefore, this transaction will form a monopoly.

While this will be the largest semiconductor deal ever, in fact, measuring the deal based solely on the value of the dollar may well underestimate its importance.

ARM is at the heart of almost every smartphone currently sold, from apple iPhone to samsung Galaxy devices running google’s software. besides smartphone processors, ARM technologies are used to integrate many smaller chips into various computer systems and devices.

For Nvidia, ARM represents an opportunity to boost its fast-growing business of selling chipsets and software to data centers. In addition, the deal will further strengthen Aviva’s position, making it harder for competitors to shake up its business.

By contrast, Nvidia CEO Renxun Huang are relatively optimistic that the deal can be approved by regulators. At the time of the announcement, the parties were expected to complete the transaction within 18 months.

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