Nvidia Makes Early Concessions in EU’s Review of Arm Deal
(Bloomberg) -- Nvidia Corp. made early concessions to European Union regulators examining its bid for U.K.-based chip developer Arm Ltd.
The European Commission extended its deadline to rule on the deal until Oct. 27. It didn’t say what the company had offered.
While an offer to divest operations or make changes to the business can sometimes allay regulators’ concerns, the EU is likely to extend its review by at least another four months. That may also give it the chance to negotiate more complicated concessions.
Lengthy regulatory reviews look set to see the company miss its initial target to close in March 2022, which can be extended until September. Rivals and chip customers have criticized the $40 billion deal after it was announced more than a year ago.
Qualcomm Inc. and Alphabet Inc.’s Google have voiced complaints that Nvidia’s control of Arm’s licenses for essential chip technology could threaten the Cambridge, England-based chip designer’s role as a neutral partner often compared to the Switzerland of the semiconductor industry. Other customers, including Broadcom Inc., MediaTek Inc. and Marvell Technology Group Ltd., have been supportive of the transaction.
The U.K.’s Competition and Markets Authority separately recommended an in-depth investigation in August. It rejected as insufficient Nvidia’s offer to maintain Arm’s open licensing, nor did it see a partial sale of Arm intellectual property as allaying its initial concerns.
Nvidia declined to comment on its offer.
“The regulatory process is confidential. We are working constructively” with the European Commission “to address any questions they may have,” the company said in an emailed statement. “This transaction will be beneficial to Arm, its licensees, competition, and the industry.”
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