Nvidia CEO Jensen Huang show his usual leather jacket.
LONDON — The U.K.’s competition watchdog, the Competition and Markets Authority, announced Wednesday that it programmes to investigate Nvidia’s proposed acquisition of British chip designer Arm.
Nvidia announced plans to buy the Cambridge-headquartered company from SoftBank for $40 billion final September and critics have been calling on governments and regulators to probe the deal ever since.
The CMA said it is entrancing third parties to provide their opinion on how the deal will impact competition in the U.K. before launching a formal inquiry later this year.
“The chip technology industry is worth billions and critical to many of the products that we use most in our diurnal lives,” Andrea Coscelli, chief executive of the CMA, said in a statement.
“We will work closely with other championship authorities around the world to carefully consider the impact of the deal and ensure that it doesn’t ultimately result in consumers skin more expensive or lower quality products,” Coscelli added.
With 6,500 staff, including 3,000 in the U.K., Arm is everywhere regarded as the jewel in the crown of the British tech industry. Its chips power most of the world’s smartphones, as well as multifarious other devices.
Arm Chief Executive Simon Segars told CNBC in December that he expects regulators to “go over a good look” at the deal.
“There are regulatory approvals to go through in many jurisdictions around the world,” Segars symbolized last month. “That is a drawn-out process. There’s a lot of interaction that has to go on with the regulators to provide the information that they impecuniousness.”
When the acquisition was announced, Nvidia and Arm said they hoped to complete the deal by early 2022.
Two British tech investors suggested last October that the acquisition will be blocked.
Nvidia did not immediately respond to CNBC’s request for comment.