4 ms·

I'm not sure how much sway British authorities would have, since ARM is now wholly owned by SoftBank?

panpanna 6y ago
In a merger of this scale all the big powers (US, EU, China, and I assume also UK now) have basically veto right. There are countless examples where country 1 has stopped a merger between a company from country 2 and one from country 3.
- vageli 6y ago
  > In a merger of this scale all the big powers (US, EU, China, and I assume also UK now) have basically veto right. > There are countless examples where country 1 has stopped a merger between a company from country 2 and one from country 3. From what I've seen, the only method of enforcement for a third-party country is to ban the sale of goods in their respective markets following the merger (like GE/Honeywell in the early 2000s). Would that even be possible in this case?
  - panpanna 6y ago
    Not sure how this is enforced. Generally the merger falls apart if there are any indications of this happening. Don't forget that these are public companies and a stopped merger can affect their stock. Besides, major investors would eat the board alive if they put the company in such situation.
nabla9 6y ago
Antitrust regulators power is determined by the size of the market, not the location of the company HQ. Antitrust regulators for big markets like the US, EU can effectively block mergers from any internationally operating company. Both AMD and Nvidia need access to EU - their customers certainly do.
- vageli 6y ago
  > Antitrust regulators power is determined by the size of the market, not the location of the company HQ. > Antitrust regulators for big markets like the US, EU can effectively block mergers from any internationally operating company. Both AMD and Nvidia need access to EU - their customers certainly do. They could block the merger and if the companies decided to go ahead with it anyway, the EU would ban imports. But, wouldn't that further consolidate the market?
  - bobthepanda 6y ago
    > and if the companies decided to go ahead with it anyway This has never happened, because the profit loss from both parties from losing access to a market with 400M+ people has always made investors blanche.
    - vageli 6y ago
      What I mean is, in what practical way could the EU ban ARM/Nvidia from their market, considering these manufacturers' chips are in many devices? Would that mean devices with those components would also be banned? What I'm trying to get at is, with a sufficiently large merger, the emerging company may produce products so ubiquitous that it would be impractical to bar them from your economy, due to the widespread use of their products and their integration into other products.

In a merger of this scale all the big powers (US, EU, China, and I assume also UK now) have basically veto right. There are countless examples where country 1 has stopped a merger between a company from country 2 and one from country 3.

vageli 6y ago
> In a merger of this scale all the big powers (US, EU, China, and I assume also UK now) have basically veto right. > There are countless examples where country 1 has stopped a merger between a company from country 2 and one from country 3. From what I've seen, the only method of enforcement for a third-party country is to ban the sale of goods in their respective markets following the merger (like GE/Honeywell in the early 2000s). Would that even be possible in this case?
- panpanna 6y ago
  Not sure how this is enforced. Generally the merger falls apart if there are any indications of this happening. Don't forget that these are public companies and a stopped merger can affect their stock. Besides, major investors would eat the board alive if they put the company in such situation.

nabla9 6y ago

Antitrust regulators power is determined by the size of the market, not the location of the company HQ. Antitrust regulators for big markets like the US, EU can effectively block mergers from any internationally operating company. Both AMD and Nvidia need access to EU - their customers certainly do.

vageli 6y ago
> Antitrust regulators power is determined by the size of the market, not the location of the company HQ. > Antitrust regulators for big markets like the US, EU can effectively block mergers from any internationally operating company. Both AMD and Nvidia need access to EU - their customers certainly do. They could block the merger and if the companies decided to go ahead with it anyway, the EU would ban imports. But, wouldn't that further consolidate the market?
- bobthepanda 6y ago
  > and if the companies decided to go ahead with it anyway This has never happened, because the profit loss from both parties from losing access to a market with 400M+ people has always made investors blanche.
  - vageli 6y ago
    What I mean is, in what practical way could the EU ban ARM/Nvidia from their market, considering these manufacturers' chips are in many devices? Would that mean devices with those components would also be banned? What I'm trying to get at is, with a sufficiently large merger, the emerging company may produce products so ubiquitous that it would be impractical to bar them from your economy, due to the widespread use of their products and their integration into other products.