F.T.C. Sues to Block Nvidia’s Takeover of Arm
Shanda Games Ltd, which includes NASDAQ-listed Noah Entertainment Ltd, is being sued by the Federal Trade Commission, accusing it of intentionally maintaining “diligence” investigations into chipmaker Nvidia Corp for several months before deciding to merge with it.
F.T.C. (The Trade Commission) made the charges after the commission was given authority to bring cases against China-based companies that trade and engage in U.S. activity.
Noah, through its Chinese units, agreed last week to buy mobile phone chipmaker Arm Holdings Plc for $5.3 billion in cash.
Noah, which owns a 26 percent stake in Nvidia, has adopted the “buyer of last resort” option in a bid to block the takeover, the commission said in a court filing on Friday.
According to the commission, Noah placed “investigations” and “public interest work” requests in order to obtain information from ARM in the six-month period prior to the 2018 swap offer.
F.T.C. said, in line with its obligation under the Merger Act, the notices sought information on ARM products and products that contain ARM-based technology, or that may be potentially sold to ARM.
The complaint seeks to block Noah from accepting and closing the deal.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shounak Dasgupta)