London Daily

Focus on the big picture.
Wednesday, May 13, 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
The Great Western Exit: Why Best Citizens Are Fleeing the Rich World [PODCAST]
The New Robber Barons of Intelligence: Are AI Bosses More Powerful Than Rockefeller?
The End of the Old Order [Podcast]
Britain’s Democracy Is Now a Costume
The AI Gold Rush Is Coming for America’s Last Open Spaces [Podcast]
The Pentagon’s AI Squeeze: Eight Tech Giants Get In, Anthropic Gets Shut Out [Podcast]
The War Map: Professor Jiang’s Dark Theory of Iran, Trump, China, Russia, Israel, and the Coming Global Shock [Podcast]
Labour Is No Longer a National Party [Podcast]
AI Isn’t Stealing Your Job. It’s Dismantling It Piece by Piece.
Lawyers vs Engineers: Why China Builds While America Litigates [Podcast]
Churchill’s Glass: The Drunk, the Doctor, and the Myth Britain Refuses to Sober Up From
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
Kennedy’s Quiet War on Antidepressants Sparks Alarm Across America’s Medical Establishment
The Met Gala Meets the Age of Billionaire Backlash
Russian Oligarch’s Superyacht Crosses Hormuz via Iran-Controlled Route
Gunfire Disrupts White House Correspondents’ Dinner as Trump Is Evacuated
A Leak, a King, and a Fracturing Alliance
Inside the Gates Foundation Turmoil: Layoffs, Scrutiny, and the Cost of Reputational Risk
UK Biobank Breach Exposes Health Data of 500,000, Listed for Sale on Chinese Platform
KPMG Cuts Around 10% of US Audit Partners After Failed Exit Push
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
CATL Unveils Revolutionary EV Battery Tech: 1000 km Range and 7-Minute Charging Ahead of Beijing Auto Show
Crypto Scammers Capitalize on Maritime Chaos Near the Strait of Hormuz: A Rising Threat to Shipping Companies
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
×