https://www.thetimes.co.uk/article/n...ears-7xwnwdzww
Nvidia’s $40bn Arm takeover in doubt amid national security fears
The $40 billion takeover of Britain’s most valuable technology business was thrown into doubt last night amid speculation that the government is thinking of blocking the deal on national security grounds.
Last September it was announced that Arm,
the Cambridge-based microchip designer, was being sold to
Nvidia as part of the American chipmaker’s push to capitalise on the booming market for semiconductors.
The sale would net a healthy return for Arm’s current owner. SoftBank, the Japanese conglomerate, took the company private in 2016 for $34 billion.
However, the Competition and Markets Authority, at the request of Oliver Dowden, the culture secretary,
has been scrutinising the proposed takeover since April. The regulator was asked to identify any competition issues and to pull together a summary of national security concerns raised by third parties.
That report was delivered within the past two weeks and contains “worrying implications for national security”, Bloomberg said, citing someone familiar with the government discussions.
Another source claimed that the UK was likely to carry out a more in-depth review of the merger because of national security worries, although it was not immediately clear what those concerns might be.
A spokesman for Nvidia said: “We continue to work through the regulatory process with the UK government. We look forward to their questions and expect to resolve any issues they may have.” The Department for Digital, Culture, Media amd Sport could not be reached for comment.….