London Daily

Focus on the big picture.
Saturday, Oct 03, 2026

Arm takeover: Government orders national security and competition probe over $40bn buyout by Nvidia

Arm takeover: Government orders national security and competition probe over $40bn buyout by Nvidia

The decision follows an initial investigation by the CMA which found the sale of the tech firm, whose chip designs are used across global industry, could weaken rivals and stifle innovation.

Nadine Dorries, the digital secretary, has ordered an in-depth probe into the $40bn planned takeover of Britain's Arm Holdings by America's Nvidia - on national security as well as competition grounds.

Cambridge-based Arm designs chips licensed for use across global industry with customers including Apple, Samsung and Intel.

Its current owner, the Japanese conglomerate Softbank, agreed last September to sell it to Nvidia.

Digital secretary Nadine Dorries ordered the in-depth investigation


But an initial investigation by the UK's Competition and Markets Authority (CMA) reported earlier this year that the deal could weaken rivals and stifle innovation and recommended that it should be more closely examined in a "phase two" probe.

The CMA said the takeover may ultimately mean more expensive or lower quality products in cutting edge technologies such a gaming, data centres, the "internet of things" and self-driving cars.

Arm occupies a key position at the heart of the global semiconductor industry and more than 200 billion chips have been sold based on its technology.

Nvidia, which makes graphic and AI chips, is a rival to some other companies that also use Arm's technology - one cause for concern over the deal.

In addition to the CMA investigation, Britain's department for digital, culture, media and sport (DCMS) has also been gathering evidence from across government over national security concerns.

It said: "The chips, based on Arm's intellectual property, power smartphones and are contained in a considerable proportion of connected devices within homes, cars and businesses.

SoftBank has agreed to sell Arm


"While not all individual devices relying on Arm-based chips are necessarily classed as 'critical' in themselves, the security and resilience of the broader supply chain is important for UK national security."

Ms Dorries said: "Arm has a unique place in the global technology supply chain and we must make sure the implications of this transaction are fully considered.

"The CMA will now report to me on competition and national security grounds and provide advice on the next steps.

"The government's commitment to our thriving tech sector is unwavering and we welcome foreign investment, but it is right that we fully consider the implications of this transaction."

The CMA will now have 24 weeks to carry out its investigation and deliver its report to the digital secretary to decide whether to act to remedy any adverse consequences or refer the case back to the regulator to take any action over competition concerns.

Authorities in the US and China are also investigating the deal.

Nvidia has pledged to maintain the neutrality that has been central to Arm's success.

It said it planned to address the initial concerns flagged by the CMA in August and that it would continue to work with the UK government over the deal.

A spokesperson said: "The phase two process will enable us to demonstrate that the transaction will help to accelerate Arm and boost competition and innovation, including in the UK."

Newsletter

Related Articles

0:00
0:00
Close
Church of England to Apologize for Role in Historical Forced Adoptions
UK Defence Ministry Investigates Historical Use of RAF Bases by Jeffrey Epstein
Scottish Housing Completions Fall to 11-Year Low
Welsh First Minister Calls for Expanded Devolution Settlement
UK Pledges £50 Million to Expand Domestic Military Drone Capabilities
UK Opens First Commercial Geothermal Plant in Cornwall
Green Party Wins Gorton and Denton By-Election as Labour Falls to Third
Prime Minister Andy Burnham Opens Review of UK-EU Relationship
UK Inflation Rises to 3.1%, Adding Pressure on Household Finances
UK Removes VAT From Domestic Electricity Bills to Ease Winter Energy Costs
Counterterrorism Police Arrest Sixth Suspect Over RAF Fairford Incident
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Chancellor John Healey Faces Tax and Pension Scrutiny Ahead of Autumn Budget
Metropolitan Police Apologise for Accidental Disclosure in High-Profile Investigation
UK Universities Report Record International Enrolment as Housing Pressure Grows
UK Logistics Firms Monitor Rhine Disruption as Low Water Threatens European Supply Chains
UK Food Industry Warns Inflation Could Approach 7%
UK Introduces Vaping Duty and Mandatory Retail Stamps
Scotland Raises Property Taxes and Expands Child Payment in Annual Budget
Greggs Plans Four Factory Closures With 740 Jobs at Risk
OECD Raises UK 2026 Growth Forecast to 1.1%
UK Inflation Rises to 3.1% as Bank of England Faces Rate Debate
Andy Burnham Criticises Brexit and Says Rejoining EU Single Market Remains an Option
UK Imposes New Sanctions on Russian Military Networks and Propagandists
UK Launches Nationwide Early-Release Prison Scheme
Andy Burnham Says Security Services See Signs of Iranian Involvement in RAF Fairford Incident
Manchester City Found Guilty on Premier League Financial Charges After Independent Investigation
Scottish Court to Rule on Bid to Force No-Confidence Vote Against Aberdeen Council Co-Leader
UK Bans Extra Charges for Seating Children Under 12 Beside Accompanying Adults
UK Introduces Vaping Duty and New Licensing Requirements
Greggs to Close Four UK Factories and Cut 740 Jobs
Hundreds of Prisoners Released Early as England and Wales Prisons Reach 98% Capacity
UK Unveils New Russia Sanctions Targeting War Funding and Shadow Fleet
Burnham Says There Are Strong Indications of Iranian Involvement in RAF Fairford Security Breach
Prime Minister Andy Burnham Raises Prospect of Reviewing Britain's Post-Brexit EU Relationship
Markets Price in Bank of England Rate Increases as Inflation Rises to 3.1%
UK Borrowing Costs Climb Toward 5.5% as Global Bond Sell-Off Intensifies
UK-France One-In-One-Out Migration Agreement Expires as London Seeks Alternative Measures
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
×