UK intervenes in Nvidia's ARM deal
Digital Secretary Oliver Dowden has issued a Public Interest Intervention Notice (PIIN) in relation to the proposed sale of ARM to Nvidia. “Following careful consideration of the proposed takeover of ARM, I have today issued an intervention notice on national security grounds," says Digital Secretary, Oliver Dowden.
The Digital Secretary has written to the Competition and Markets Authority (CMA) to inform them of his decision and has instructed them to begin a ‘phase one’ investigation to assess the transaction. The CMA will now prepare a report with advice on jurisdictional and competition issues. The Digital Secretary, who has ‘quasi-judicial’ powers under the Enterprise Act 2002 to intervene in certain mergers on public interest grounds, has issued the notice to ensure that any national security implications for the United Kingdom are explored. “Following careful consideration of the proposed takeover of ARM, I have today issued an intervention notice on national security grounds. As a next step and to help me gather the relevant information, the UK’s independent competition authority will now prepare a report on the implications of the transaction, which will help inform any further decisions,” Digital Secretary Oliver Dowden says in a press release. He continues stating that while the country want to support a thriving UK tech industry and welcome foreign investment, there is also the need to "properly consider the national security implications of a transaction like this." The ‘phase one’ investigation will ensure specific considerations around competition, jurisdiction and national security are assessed. It will advise whether the acquisition results in a substantial lessening of competition in any market in the UK. The CMA has until midnight at the end of 30 July 2021 to complete and submit this report to the Digital Secretary.