U.K. considers blocking chipmaker Nvidia's takeover of Arm over security risks

The U.K. is considering blocking a takeover of Arm Ltd. by Nvidia Corp. due to potential risks to national security, according to people familiar with the discussions.

Nvidia, the biggest U.S. chip company by market capitalization, announced in September a $40 billion deal to acquire Arm from Japan’s SoftBank Group Corp., as part of a push to spread its reach in the surging market for semiconductors. SoftBank has been selling assets to raise cash for buybacks and fresh investments in startups.

In April, U.K. Culture Secretary Oliver Dowden asked the Competition and Markets Authority (CMA) to prepare a report on whether the deal could be deemed anti-competitive, along with a summary of any national security concerns raised by third parties.