Ministers prepare to intervene in takeover of UK microchip giant

Security fears may hinder takeover of UK microchip giant as ministers prepare to intervene… and they could even BLOCK the £30billion deal

Ministers could intervene in the proposed takeover of British microchip maker Arm over national security fears.

They could even block the £30billion deal after regulators at the Competition and Markets Authority raised worries that the move could weaken Britain’s defences.

Arm’s chips feature in almost all smartphone devices and are also used in servers that support governments’ IT systems. 

Ministers could intervene in the proposed takeover of British microchip maker Arm over national security fears. SoftBank is trying to sell Arm to US rival Nvidia (pictured)

The Cambridge-based company is currently owned by Japanese conglomerate SoftBank, which is trying to sell Arm to US rival Nvidia.

But critics claim the takeover would mean world-renowned technology – and potentially 3,000 jobs – leaving the UK. 

After nearly a year of wrangling, the Government is now minded to block the deal, sources said.

A spokesman for Nvidia said: ‘We continue to work through the regulatory process with the UK government.’

Culture Secretary Oliver Dowden (pictured) told the Competition and Markets Authority to flag security concerns about the takeover. Their report contains implications for national security

Culture Secretary Oliver Dowden asked the CMA in April to prepare a report on whether the takeover would damage competition and told it to flag security concerns.

The CMA delivered its report late last month, and it contains worrying implications for national security, the sources added. 

Former business secretary Lord Mandelson has also called the deal a ‘direct threat to our security of supply and sovereignty…’

The Department for Digital, Culture, Media and Sport declined to comment.

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