NVIDIA’s attempt to purchase Arm Holdings may be headed for a rocky patch, as the company may miss its deadline.
When NVIDIA announced it would be acquiring Arm, an initial deadline was set for March 2022. Unfortunately for the company, it appears European regulators may not want to start examining the case until after the summer holiday, according to Reuters. Since the deal cannot proceed without US, European and Chinese regulators signing off, NVIDIA is effectively dead in the water until the EU regulators make a move.
Should the March 2022 deadline pass without a deal, the companies have the option of extending the deadline to September, at which point either one can walk away if the deal doesn’t receive government approval.
There will likely be significant pressure on Arm to do just that, as governments and companies alike are concerned with NVIDIA purchasing the chipmaker. The UK, in particular, is concerned about losing its greatest tech success story to a US rival.
Similarly, the many companies that rely on Arm processors are concerned NVIDIA will not uphold the same Swiss-like neutrality Arm has always maintained, being willing to work with any and all other companies. Some are also concerned NVIDIA may hold back some of Arm’s more significant breakthroughs for itself.