UK steps in on Nvidia's Arm takeover on security grounds

Yahoo Finance's LaToya Harding breaks down the latest overseas.

Video transcript

ZACK GUZMAN: Let's check in on the action overseas as UK regulators say they're going to take a second look at that deal for Nvidia to acquire Arm in that $40 billion takeover deal on the grounds of national security implications. And for more on that, I want to get to Yahoo Finance's LaToya Harding, who has more details on that. LaToya.

LATOYA HARDING: Yeah, that's right. The UK government has stepped in on Nvidia's acquisition of British technology company, Arm. And that's due to concerns surrounding security. Now, Digital Secretary Oliver [INAUDIBLE] has issued a public interest intervention notice. And he's confirmed that he's intervening. He's written to the Competition and Markets Authority here in the UK to inform them of his decision and instructed them to begin a phase one investigation.

So the CMA will now prepare a report with advice on competition issues. And it has until midnight until the end of July 30 of this year to complete and submit its report, which will send back to the Digital Secretary. Now Arm is a major global player in the semiconductor industry. And its technology is at the heart of most smartphones and devices worldwide. And it licenses to the likes of Apple, Samsung, et cetera.

And as you said, this is the second time that it's been under investigation by the CMA. So in January earlier this year, again, it was under investigation with the deal. And that was amid concerns that it could lead on to withdraw and increase its prices or even reduce the quality of its services to some of Nvidia's competitors.

And finally, just this all comes, just as today, just looking at markets quickly, it has been a fairly muted session in Europe today. And we've had stocks edging into the green after opening, but then retreating as the session continues. So the FTSE has closed in the red today, just under the 7,000 point mark, which it hit on Friday last week for the first time in over a year. The DAX ended lower, too, and the [INAUDIBLE] just managing to close higher compared to the other two as the country works towards re-opening its borders to foreign travelers who have been vaccinated or who have-- are able to show evidence of a negative COVID test.

Now, on the weekend, we had President Emmanuel Macron just basically saying that France is working to progressively lift these restrictions at the beginning of May. And it's looking to build a European certificate also to facilitate travels. And that all ties in with the vaccine rollout program that's gathering pace across Europe and also in the country itself.

ZACK GUZMAN: I know a lot of people would be very happy to see that travel greenlit. But LaToya Harding bringing us the latest there with everything across the pond, appreciate that.