London
In a statement on Monday, Culture Secretary Oliver Dowden ordered the UK's independent competition watchdog to begin a “phase one''” investigation of the $40 billion deal. He said it''s “appropriate that we properly consider the national security implications of a transaction like this.”The Competition and Markets Authority had already started earlier this year inviting third parties to provide their views on the anticipated sale and its impact on competition.
When the acquisition was first announced in September last year, Nvidia pledged to keep Arm''s headquarters in Cambridge while also promising to expand on Arm''s work to build a “world-class” technology centre.
“Following careful consideration of the proposed takeover of Arm, I have today issued an intervention notice on national security grounds,” Dowden said.
“As a next step and to help me gather the relevant information, the UK''s independent competition authority will now prepare a report on the implications of the transaction, which will help inform any further decisions."
The CMA will advise whether the takeover could lead to a substantial lessening of competition in any market in the UK, and whether it should be put through further scrutiny in a phase two'' investigation.
It will have until July 30 to complete the report.
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