Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

NVIDIA CORPORATION

(NVDA)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Nvidia's closing of $40 bln Arm deal could hinge on Europe

06/16/2021 | 12:48am EDT

June 15 (Reuters) - Nvidia Corp may not be able to meet a March 2022 deadline for closing its $40 billion acquisition of British chip technology firm Arm Ltd due to European regulators' reluctance to consider the case until after the summer holidays, people familiar with the matter told Reuters.

Nvidia announced the Arm deal last year, sparking an immediate backlash in the semiconductor industry, where Arm has long been a neutral player licensing key intellectual property to customers who are otherwise intense rivals, including Qualcomm Inc, Samsung Electronics Co Ltd and Apple Inc.

The company needs regulatory approval from U.S., European and Chinese authorities, all of which are expected to scrutinize the transaction closely. While Nvidia told investors last year that it plans to close the deal by March 2022, the purchase agreement gives the two companies the option to extend the deadline to September 2022. But at that point, either party has the option to walk away if the deal does not receive government approval.

Nvidia has not yet filed an application to clear the deal with the European Commission. Officials there have made it clear to the company that they need until September to gather enough information to accept Nvidia's formal application for approval, according to three people familiar with the matter.

That could make it difficult for Nvidia to close the deal by March of next year as planned, these people said. Technology news publication The Information earlier on Tuesday reported the possibility of a delayed filing https://www.theinformation.com/articles/nvidias-40-billion-takeover-of-arm-faces-new-foe-european-vacations in Europe.

The U.S. Federal Trade Commission has been gathering information about the deal, people familiar with the matter told Reuters. Nvidia has filed for approval of the deal in China, the Financial Times reported last week.

In a statement, Nvidia said that “many jurisdictions have a pre-notification period, where the parties have a detailed and ongoing dialogue with regulators. Our discussions with regulators have been thorough and constructive. We’ll continue to work throughout the summer, as we anticipated all along, and expect to close in early 2022.”

By the letter of the law in Europe, Nvidia can file its application at any time. But in practice, regulatory attorneys said, most companies wait until receiving an informal go-ahead from regulators before formally filing.

One regulatory attorney who has worked on European deals said a move to file before regulators have signaled they are ready to act on the application would be "suicidal" for Nvidia's good relations with European regulators.

"After nine months, the commission still feels there are very serious concerns," the attorney said. "They are not ready to take this filing. If Nvidia goes down this road, it's a very confrontational strategy with a very powerful agency."

The Nvidia-Arm deal also faces headwinds in the United Kingdom, which has said it will conduct a national security review of the deal. Headquartered in Cambridge, England, Arm is considered a crown jewel of the country's tech industry, and British regulators required it to set UK headcount targets before allowing it to be sold to Japan's SoftBank Group Corp in 2016.

Nvidia's stock has risen 37% this year, versus a 12% rise in the Nasdaq composite.

The fear among chip firms is that Nvidia will give itself early access to Arm's innovations rather than distributing them to the entire industry on an equal basis. Nvidia and Arm officials have told Reuters they intend to keep "firewalls" in place at the combined company to prevent that from happening.

Questions on how Nvidia will run Arm took on new urgency in April when Nvidia said it will make an Arm-based central processor chip for data centers, its first major Arm effort and the centerpiece of its strategy to challenge rivals Intel Corp and Advanced Micro Devices Inc.

(Reporting by Stephen Nellis in San Francisco and Foo Yun Chee in Brussels; Editing by Jonathan Weber and Lisa Shumaker)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ADVANCED MICRO DEVICES, INC. 1.03% 92.15 Delayed Quote.0.48%
APPLE INC. 1.20% 148.56 Delayed Quote.11.96%
INTEL CORPORATION -5.29% 53 Delayed Quote.6.38%
NASDAQ COMP. 1.04% 14836.991139 Delayed Quote.13.94%
NVIDIA CORPORATION -0.18% 195.58 Delayed Quote.49.81%
QUALCOMM, INC. 1.71% 144.88 Delayed Quote.-4.90%
SAMSUNG ELECTRONICS CO., LTD. -0.50% 79300 End-of-day quote.-2.10%
SOFTBANK GROUP CORP. 0.47% 7261 End-of-day quote.-9.89%
All news about NVIDIA CORPORATION
07/25Arm CEO Rejects IPO Rumors as Nvidia Deal Faces Further Delays
MT
07/23NVIDIA : Argus Adjusts Price Target on NVIDIA to $230 From $175, Maintains Buy R..
MT
07/22NVIDIA : GFN Thursday Slays with ‘Orcs Must Die! 3' Coming to GeForce NOW
PU
07/22IGEL Collaborates with NVIDIA to Power High-Performance End User Computing
CI
07/22NVIDIA : Citigroup Adjusts Price Target on NVIDIA to $223 From $180, Maintains B..
MT
07/21OPPENHEIMER ADJUSTS PRICE TARGET FOR : 1 Stock Split, Maintains Outperform Ratin..
MT
07/21SHOPPING SMART : AiFi Using AI to Spark a Retail Renaissance
PU
07/21Terranet self-driving sensor tests show swift reaction time
RE
07/20JUST WHAT YOU'RE LOOKING FOR : Recommender Team Suggests Winning Strategies
PU
07/20NVIDIA : Inference Breakthrough Makes Conversational AI Smarter, More Interactiv..
AQ
More news
Financials (USD)
Sales 2022 24 891 M - -
Net income 2022 8 082 M - -
Net cash 2022 11 274 M - -
P/E ratio 2022 60,6x
Yield 2022 0,08%
Capitalization 487 B 487 B -
EV / Sales 2022 19,1x
EV / Sales 2023 17,0x
Nbr of Employees 18 975
Free-Float 61,8%
Chart NVIDIA CORPORATION
Duration : Period :
NVIDIA Corporation Technical Analysis Chart | NVDA | US67066G1040 | MarketScreener
Technical analysis trends NVIDIA CORPORATION
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 42
Last Close Price 195,58 $
Average target price 194,36 $
Spread / Average Target -0,62%
EPS Revisions
Managers and Directors
Jen Hsun Huang President, Chief Executive Officer & Director
Colette M. Kress Chief Financial Officer & Executive Vice President
William James Dally Chief Scientist & Senior Vice President-Research
Tony Tamasi Senior Vice President-Content & Technology
Debora Shoquist Executive Vice President-Operations
Sector and Competitors
1st jan.Capi. (M$)
NVIDIA CORPORATION49.81%474 253
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED10.38%549 120
INTEL CORPORATION6.38%225 765
BROADCOM INC.10.35%189 622
TEXAS INSTRUMENTS13.84%173 779
QUALCOMM, INC.-4.90%155 269