London Daily

Focus on the big picture.
Wednesday, Jan 14, 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
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
×