Nvidia is facing an in-depth probe into its $40bn takeover of Cambridge semiconductor company Arm after the Government said it was intervening in the deal over national security concerns. Digital Secretary Oliver Dowden said he had instructed the Competition and Markets Authority (CMA) to kick off an initial probe into the takeover to "ensure that any national security implications for the United Kingdom are explored". The watchdog has until the end of July to complete its investigation, at which point Mr Dowden will make a decision on whether to refer the deal to a much more rigorous Phase 2 probe. The Digital Secretary said: "We want to support our thriving UK tech industry and welcome foreign investment, but it is appropriate that we properly consider the national security implications of a transaction like this.” The CMA had already been doing preliminary work for an investigation in the deal, fielding comments from the industry, but had not yet kicked off a probe. At the time, it had said its work centred around whether the takeover could have a detrimental effect on competition in the UK. News of the latest probe will come as yet another roadblock to the deal, which has already been facing scrutiny in the US. America’s Federal Trade Commission (FTC) has been looking at Nvidia's takeover, centering around the competition concerns. Rivals argue that the deal would hamper Arm’s existing neutral licensing system, given Nvidia is one of its many customers. Arm's chip designs are used in billions of gadgets including smartphones and connected cars, and the company has previously been described as the "Switzerland" of semiconductors. However, customers including Tesla and Qualcomm are concerned that its merging into Nvidia could give the US tech behemoth an unfair advantage or lead to higher prices. Arm did not immediately respond to requests for comment. A spokesman for Nvidia said:“We do not believe that this transaction poses any material national security issues. We will continue to work closely with the British authorities, as we have done since the announcement of this deal.” More to follow
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Cathie Wood's ARK Invest recently launched its ARK Space Exploration & Innovation ETF (NYSEMKT: ARKX). This is the firm's latest actively managed exchange traded fund, and it's designed to give investors exposure to various tech and aerospace companies that enable or benefit from space exploration.