Nvidia's (NVDA) - Get NVIDIA Corporation Report bid to purchase U.K. chip designer Arm hit a snag from European Union regulators, who say the concessions the U.S. chipmaker has made aren't enough to mitigate antitrust concern.
Nvidia is preparing to file for regulatory clearance in Brussels this week, but there are concerns among officials in the EU's European Commission competitions committee, the Financial Times reported.
"It's not certain the deal will get easily cleared here," an unnamed regulator told the news service.
This person added that regulators are skeptical about Nvidia's promise to allow rivals continued fair access to Arm's chip designs if the deal closes.
The officials' concerns are based on "extensive preliminary conversations," regulators have had with the company, according to the FT.
The EU regulatory hurdle emerged after officials in the U.K. said last month that the planned $54 billion deal raised "serious competition concerns," and called for an in-depth investigation into the deal.
Nvidia has offered the U.K.'s Competition and Markets Authority some concessions, but in August the agency still called for a Phase 2 investigation into the deal .
"The CMA has been very aggressive. If they are not willing to accept [the] concessions, it will be a matter of trying to convince them until the very end,” one person with direct knowledge of the deal told FT. "It will go down to the wire."
That investigation is expected to delay the timeline for the transaction by several months.
Shares of Nvidia at last check were 1% lower at $226.17.