US Sues to Block Nvidia’s Merger with Arm, Largest Semiconductor Deal in History – .

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Nvidia shares jump as analysts say data center growth “has some wiggle room” – .


On Thursday, the Federal Trade Commission filed a lawsuit to block the proposed acquisition of Arm Ltd. by Nvidia Corp.

The FTC said in an announcement that Nvidia’s NVDA,
+2,20 %
“The proposed vertical deal would give one of the largest chip companies control over the computer technology and designs that rival companies rely on to develop their own competing chips. The commissioners voted 4-0 to block the merger, and an administrative trial is expected to begin in August next year.

“Tomorrow’s technologies depend on preserving today’s competitive and cutting-edge chip markets,” Holly Vedova, director of the FTC’s Competition Bureau, said in a statement. “This proposed deal would distort Arm’s incentives in the chip markets and allow the combined company to unfairly undermine Nvidia’s competitors.” ”

In a statement, a spokesperson for Nvidia said, “As we enter this next stage of the FTC process, we will continue to work to demonstrate that this transaction will benefit the industry and promote competition. “

“Nvidia will invest in Arm’s R&D, accelerate its roadmaps and expand its offerings in a way that stimulates competition, creates more opportunities for all Arm licensees and extends the Arm ecosystem,” continued the communicated. “Nvidia is committed to preserving Arm’s open licensing model and ensuring that its intellectual property is available to all interested licensees, current and future. “

Nvidia’s proposal to acquire Arm from SoftBank Group Corp. 9984,
-5,10%
has encountered several headwinds since its announcement in late 2020, and the company said in its last earnings report in mid-November that it was working with the FTC to address concerns raised by the deal.

Nvidia shares were up around 2% at the time of the release and 2.4% to $ 321.94 at the last check.

Check back for more on this breaking story.

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