Blog: Brexit Britain to keep grip on Arm Holdings as tech giant to be listed on London FTSE 100 – Express

Japan’s Softbank, which acquired Arm for $32billion in 2016, was forced to abandon its planned $40billion (£30billion) sale of the firm to US rival Nvidia earlier this year. Now, as it explores options for a stock market float, it has reportedly decided to list some of its stake in London instead of going ahead with a New York-only IPO.

Nvidia announced it wanted to take over Cambridge-based Arm from SoftBank in September 2020.

The sale would have been the largest in the semiconductor industry, but after fierce opposition from regulators on national security and competition grounds, it sunk last February.

In a joint statement, Softbank and Nvidia said they had decided to terminate the takeover due to “significant regulatory challenges preventing the consummation of the transaction, despite good faith efforts by the parties”.

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SoftBank still plans to sell a portion of Arm, with founder Masayoshi Son saying he aims for the operation to go ahead by the end of the company’s financial year next March, with a boosted price tag of around $60billion.

For the moment, though, all eyes are currently on how and where it takes Arm public

The British company, which has more than 500 clients using its chip designs, including Apple, Samsung and Google, is a proud asset to the country’s tech portfolio.

In 2021, it shipped a record 29.2 billion chips and its total revenues were up 35 percent to $2.7billion.

SoftBank still plans to sell a portion of Arm, with founder Masayoshi Son saying he aims for the operation to go ahead by the end of the company’s financial year next March, with a boosted price tag of around $60billion.

Listing it on the FTSE 100, London’s top share index, rather than exclusively on America’s Nasdaq exchange — as reported by Bloomberg — would be a cause of celebration for Prime Minister Boris Johnson, who has led overtures to SoftBank bosses to keep the tech giant in the UK.

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Chancellor Rishi Sunak, meanwhile, has held two meetings with Arm and SoftBank executives over the last six weeks, the Daily Mail reported, to push for the national tech giant to stay at home, even if just partially.

The outlet added that the Chancellor raised the possibility of a golden share — 25.1 percent — to prevent a foreign takeover in future and keep a grip on the business.

Hermann Hauser, the co-founder of Arm Holdings, said on Tuesday the company listing in the UK is a matter of “technological sovereignty” for Europe.

He told The Times: “This means you have a full set of all the critical technologies you need to run a country and economy properly.

“Not being technology sovereign means you become dependent on other countries.”

According to Mr Hauser, hinting at plans to float in the US could be a strategy to get the “best deal” and receive “preferential treatment” from the UK Government to list here.

He confirmed that Arm could be dual-listed as it was when previously a public company – a claim backed by Chris Philp, Minister for Technology and the Digital Economy.

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