Retail Crowd

Complete British News World

The UK is blocking the acquisition of ARM

The government wants to investigate whether the acquisition poses a national security risk.

Nvidia Announced in the fall of last yearBuy ARM for $ 40 billion. The acquisition was initially expected to take 18 months to complete, but it is increasingly being determined that this is not enough because the relevant authorities are also deeply concerned about the deal.

H i rd etés

A Reuters According to its report, the United Kingdom has decided to map out possible impacts from a national security perspective. The investigation is being conducted by the UK Competition and Markets Commission (CMA), which has previously begun evaluating acquisitions. Market competition.

The process for such a serious deal cannot be considered unique and initially Nvidia will have a real problem with the British and Chinese authorities. For the UK, this is an important issue because, although ARM is owned by the Japanese, its headquarters are still within the island country, and it is decided on Downing Street with access to ARM technologies.

Since there may be two national security risks from the acquisition, the British would certainly want their authority over the ARM to remain constant. One is the condition of the work. As Nvidia has repeatedly said verbally that ARM will be island nation based, these are relatively easy to defend, meaning a written agreement is simply required and Greens will not be able to change their minds later.

The situation with export regulations is the most difficult case. The key question for the British here is whether the US can use this as a “weapon” in their global trade negotiations if technologies are provided from Nvidia for the new generation ARM designs. This is already a very difficult factor to address as the UK is abandoning its technological advantage by authorizing ARM sales. Here are several possible solutions. On the one hand, the British may condition the acquisition, in which Nvidia will not be able to bring its own technologies into ARM, so they will not yet be able to determine ARM-related export terms at the White House. While this solves the UK problem properly, it is considered commercially impossible for a company to pay $ 40 billion.

READ  Index - Foreign - Brexit: The British government wants to negotiate a vote

The British approach to technology will probably have to be looked at differently, and the US should be involved. In theory, the UK could conclude a contract guaranteeing unlimited use of ARM-related Nvidia technologies. This would solve the above problems as well, if the United States wanted to use ARM as a “weapon” they could technically do so, but not against the British. This would significantly reduce the national security risk associated with the sale of ARM, which the countries in question would have to acknowledge, and this would lead to protracted negotiations. The latter is not good for ARM or NVIDIA because the acquisition may take months or, worse, years longer than planned.

In addition to the above, there is even the acquisition of a Chinese license, and the relationship between the Eastern powers and the United States is not currently very friendly, which means that the national security impact of the acquisition will be explored. For now, however, it may be important for the English to accept this business.