The UK Competition and Market Authority said on Wednesday that it plans to destroy Nvidia Corp.’s NVDA. to investigate,
planned deal for Arm Ltd. “The CMA will likely consider whether Post-acquisition Arm has an incentive to withdraw, raise prices, or reduce the quality of its IP licensing services to NVIDIA’s rivals,” the CMA said in a release. CMA Chief Executive Andrea Coscelli said in the publication that the investigation will be aimed at ensuring that Nvidia’s deal for Arm “does not ultimately result in consumers dealing with more expensive or lower quality products.” A formal investigation will start later this year. Nvidia announced in September that it planned to divest Arm from Softbank Group Corp. in a deal worth $ 40 billion in cash and stock. Nvidia shares are down 1.8% during Wednesday morning trading. They have lost 4% in the last three months as the S&P 500 SPX,
added 10.5%.