NVIDIA-Arm deal promises to be the largest takeover in the industry and won’t be easy to beat

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Last updated on May 1st, 2023 at 08:27 pm

NVIDIA-Arm deal promises to be the largest takeover in the industry and won’t be easy to beat

The Chinese media are increasingly discussing the idea of ​​boycotting the NVIDIA-Arm deal, as local clients of the latter express concerns about the influence of political factors on their own activities. NVIDIA’s management is still trying to calm everyone down with promises to remain neutral, but deals of this level are becoming more difficult to conclude for other reasons.

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IC Insights specialists undertook to remind that large deals on the merger of international companies in recent years have often disintegrated due to the interference of antimonopoly authorities and authorities of individual countries. In 2018, the US president blocked an attempt by Broadcom to carry out a hostile takeover of Qualcomm, and then $ 121 billion was at stake, three times the budget of the deal between NVIDIA and Arm.

In the same year, Qualcomm was unable to take over NXP Semiconductors for $ 44 billion, as the Chinese antitrust authorities opposed it. This deal is already close in scale to the one being prepared between NVIDIA and Arm, but relations between the US and China are now not in the best stage to expect a quick agreement.

Recall, NVIDIA expects to conclude a deal with Arm within eighteen months. Legal experts suggest that if the PRC authorities do not openly block the deal, they may put forward conditions that are inappropriate for NVIDIA, or delay the consideration of the issue as much as possible. In the modern world, it is becoming more and more difficult to conduct transactions of such a scale, as the representatives of IC Insights summarize.

Also Read:   At the end of the third quarter, NVIDIA shares were among the growth leaders
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