The UK Competition and Markets Authority said Wednesday it plans to investigate Nvidia Corp.’s NVDA.
planned agreement for Arm Ltd. “The CMA is likely to consider whether, after taking control, Arm has an incentive to withdraw, raise prices or reduce the quality of its IP licensing services to NVIDIA rivals,” the CMA said in a statement. CMA chief executive Andrea Coscelli said in the statement that the investigation will seek to ensure that Nvidia’s deal with Arm “does not end up leading consumers to face more expensive or lower quality products.” A formal investigation is launched later this year. Nvidia announced in September that it planned to buy Arm from Softbank Group Corp. in a deal valued at $ 40 billion in cash and shares. Shares of Nvidia fell 1.8% in trading on Wednesday morning. They have lost 4% in the last three months like the S&P 500 SPX,
has added 10.5%.