NVIDIA is at risk of losing a sizable chunk of change due to all of the delays and other difficulties that it keeps encountering with its takeover of Arm. As reported by The Telegraph, the company has begun voicing concerns over the potential loss of its downpayment for the renowned British chipmaker, which exceeds $1 billion. The money won’t be refunded in the event that regulators opt to kill the acquisition.
“If the transaction does not close due to failure to receive regulatory approval, and all other covenants have been met, we will not be refunded $1.25bn of the advanced consideration,” NVIDIA said.
From The Telegraph:
Nvidia had originally hoped to close the deal in early 2022, with the option to extend talks until September.
But the takeover is facing an in-depth investigation by the UK’s Competition and Markets Authority (CMA) and another in the European Union that is not due to report until March.
The company is also in discussions with US authorities over possible remedies to concerns around the deal, and is expecting a formal inquiry in China which could last months.
NVIDIA revealed that it would be acquiring Arm for $40 billion on September 13, 2020. Jensen Huang, founder and CEO of NVIDIA, had suggested that the deal would benefit both companies massively and contribute to significant advances in computing.
“Arm will remain headquartered in Cambridge,” Huang clarified. “We will expand on this great site and build a world-class AI research facility, supporting developments in healthcare, life sciences, robotics, self-driving cars and other fields. And, to attract researchers and scientists from the U.K. and around the world to conduct groundbreaking work, NVIDIA will build a state-of-the-art AI supercomputer, powered by Arm CPUs. Arm Cambridge will be a world-class technology center.”
Source: The Telegraph