American billionaire Elon Musk is raising competition concerns over U.S based technology company Nvdia Corp. (NVDA) acquisition deal with UK based semiconductor designer Arm. Musk joins a list of multinational corporates and other high profile individuals who have reservations on this merger deal.
According to the acquisition deal, Nvidia is offering to pay $12 billion in cash and $22.5 billion worth of its stock for the British chip designer. The deal also includes an extra $2 billion which will be paid immediately after contract has been signed.
“Arm’s headquarters will continue to be located in Cambridge. We will expand and build world-class AI research facilities in this excellent place to support healthcare, life sciences, robotics, autonomous vehicles and other fields of development. And, in order to attract researchers and scientists from the UK and around the world for groundbreaking work, Nvidia will build the most advanced AI supercomputer powered by Arm CPU,” said Nvidia’a founder, Huang Renxun, a while back.
Several other high profile companies like Samsung Electronics Ltd. (KRX: 005930) and Amazon Inc. (AMZN) have also publicly raised concerns of this merger deal. The two companies have since lodged opposition on the deal with United States competition authorities.
In the beginning of the year, U.S Federal Trade Commission launched an intensive probe into this merger deal. Findings from the probe are expected to be released in a few weeks’ time.