Shares of semiconductor giant Nvidia (NASDAQ:NVDA) dropped as much as 3% in early trading on Wednesday before recovering. As of 3:50 p.m. EDT, it now looks likely to close the day down only 1.5%.
As Reuters reported this morning, Nvidia has officially applied to the European Commission for antimonopoly approval of its $40 billion deal to acquire British chip design company Arm Holdings from its current owner Softbank Group (OTC:SFTB.Y). Asking permission isn’t the same thing as receiving it, however, and as Reuters points out, not only is the U.S. Federal Trade Commission looking into antimonopoly aspects of the deal, but competition authorities in the U.K. are as well — and now the EC makes three.
Nvidia says it is “working through the regulatory process and we look forward to engaging with the European Commission to address any concerns they may have” — but they may live to regret saying that. As Reuters points out, in the event the EC does not simply approve the deal, it might launch an investigation that could drag out and delay the merger by as much as four months.