The $ 40 billion deal between Nvidia and Softbank over the acquisition of processor designer Arm could be delayed by the European Commission, which has not yet received all the necessary documentation from the US GPU giant. If approval is significantly delayed, Arm will be forced to consider an IPO.
Sources with knowledge of Nvidia-Arm transactions said Telegraph The IPO remains an Arm option if it turns out that delays and rivalry failures are not overcome.
The European Commission, including competition regulators, will go on summer vacation starting Monday, July 26th. So far, the EC has not submitted the required documentation to European regulators and has not begun considering the acquisition of Arm by Nvidia. EC will return to work in early September.
Nvidia is very interested in signing contracts as it will be a developer of highly integrated data center and client platforms including CPUs, GPUs, and DPUs (Data Processing Units). Softbank is also interested in selling Arm to Nvidia. This makes Nvidia a major shareholder of the company. Arm’s management is also interested in becoming part of Nvidia because it helps avoid IPOs and focus on R & D rather than short-term profitability.
Keeping in mind that everyone is interested in this transaction, it’s very surprising that Nvidia hasn’t yet submitted the appropriate documentation to the EC. Neither Nvidia nor Softbank commented on this story Telegraph..
Assuming Nvidia submits the application to the EC by September, it will take more than six months for the Commission to consider the transaction and its impact on competition. According to experts, in the best scenario, EC will approve the acquisition by March 2022. However, the best scenario is unlikely.
“Regulators will not allow themselves to hunt down and make decisions in unsatisfactory timeframes,” said Jonathan Branton, head of DWF at the competition law firm.
When Nvidia announced in September last year that it would buy Arm from Softbank for $ 40 billion in cash and equity transactions, the transaction would be completed in 18 months by March 2022 and optionally extended to September 2022. Announced that it will be done. , Nvidia has not been approved by US, UK, Japanese or Chinese regulators. EC has not started reviewing transactions.
https://www.tomshardware.com/uk/news/ec-could-delay-nvidia-arm-transaction-approval Nvidia-Arm Deal’s delay in European approval could break it