Problems with approving the purchase of Arm from NVIDIA will arise not only in China | |
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Most often, British politicians and public figures say that NVIDIA's commitment to keep Arm jobs in Cambridge should be clearly spelled out in the contract. Of the six thousand employees of Arm, about half live and work in the UK, and the problem of job retention is becoming more urgent against the background of growing unemployment due to the pandemic. The reason for blocking the deal with NVIDIA, according to experts interviewed by CNBC in the field of investment, may be the orientation of many countries to "technological sovereignty". The transfer of Arm to the control of an American company is not very conducive to achieving this goal, so the government of the United Kingdom may decide that it would be rash to give away such an asset at this difficult time. The British authorities can block a deal both at the level of the country's government and through the powers Of the Competition and Markets Authority. The deal must also be approved by the Chinese antitrust authorities, and the Chinese authorities have recently accumulated a lot of complaints about the behavior of American partners in the foreign policy arena, which also reduces the chances of approving the NVIDIA deal to buy Arm assets. American law forces local companies to coordinate mergers and acquisitions with the antitrust authorities of those countries where the combined companies have a sufficient market share. China has generated up to 20% of Arm's revenue in recent years, and no one can ignore its interests in this deal. | |
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