Arm takeover at risk over national security fears
MINISTERS are considering blocking Arm’s $40bn (£29bn) sale to Nvidia, fearing national security consequences if the US giant takes control of the British technology company.
Oliver Dowden, the Culture Secretary, is reviewing evidence from the Competition and Markets Authority (CMA) after ordering the regulator to assess the national security implications of the deal in April. Mr Dowden is due to announce steps soon, and is able to refer the deal for a more in-depth review if concerns are raised, or insist on certain undertakings related to the deal.
The CMA’S report contains troubling details about national security and the Government is now inclined to reject the deal, Bloomberg reported last night, adding no final decision had been taken. 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 Government did not comment. When announcing the deal last September, Nvidia said it would take up to 18 months to secure regulatory clearance to buy Arm, which is owned by Japan’s Softbank. Arm is famous for an open business model in which its architecture, used in billions of microchips, is sold on an equal basis and opponents fear this would change under Nvidia.
Semiconductor technology is being scrutinised on security grounds amid concerns about China’s attempts to dominate the sector. The technology is important in defence and ministers have asked security experts to weigh in on the deal.