EU Commission: Nvidia ready to make concessions for ARM takeover

Nvidia is trying to get approval for ARM’s billion dollar takeover by making concessions. The decision of the EU Commission should be made at the end of October.

 EU Commission: Nvidia ready for concessions for ARM takeover

In the fight for EU approval for the ARM takeover, Nvidia is ready to make concessions. Nvidia wants to buy the British architecture designer ARM for around 40 billion US dollars. The EU Commission is currently examining this takeover. The decision should be announced on October 27th.

The EU Commission does not reveal what concessions Nvidia has made on the basis of its statutes. After a Reuters report’ the EU Commission is now questioning competitors and customers about the takeover before accepting the concessions at the end of October, demanding more or launching an investigation. The latter would take another four months.

ARM ubiquitous and so far neutral

ARM’s processor architectures are found in most modern smartphones and are essential in the expansion of 5G mobile networks, among other things. Companies can either license the basic ARM architecture or specific CPU core designs in order to use them for their own processors.

ARM is currently owned by the Japanese investor Softbank. Nvidia’s takeover plans are causing resentment because the company is in direct competition with other ARM licensees. Among others, Google, Microsoft and Qualcomm have already expressed concerns . However, Nvidia asserts that ARM should remain independent after the takeover.

ARM CEO supports takeover

The British Competition and Markets Authority has also examined the process under antitrust law. So UK is tending to block Nvidia’s ARM acquisition, but the investigations are not yet completed. Major ARM customers such as Broadcom, MediaTek and Marvell are supporting the takeover.

ARM CEO Simon Segars has In a blog post in early July 2021 also in favor of the takeover by Nvidia. Accordingly, Nvidia would invest significantly in the UK site and ARM would open new doors into the world of artificial intelligence.

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