Brit tech firm Arm Holdings agrees to £24 billion takeover by Japan’s Softbank in Asia’s ‘largest ever’ investment into UK
The number of jobs at the microchip designer’s Cambridge HQ will double from 1,600 to around 3,000
BRIT tech company ARM HOLDINGS yesterday agreed to a £24billion takeover by Japan’s SOFTBANK – dubbed “the largest ever (investment) from Asia into the UK.”
The number of jobs at the microchip designer’s Cambridge HQ will double from 1,600 to around 3,000 - turning it into a “a global phenomenon”.
Its products already feature in billions of devices globally from smart phones to watches, cars and games consoles.
Tech giants like APPLE, SAMSUNG, HTC, SONY AND NINTENDO rely on its products.
Earlier this year Sun City picked ARM as one of its six shares to watch in 2016 - when its stock was worth just 1004p.
Today its share price shot up by more than 40 per cent to 1,685p, with the takeover valuing it at 1,700p.
ARM’s chairman Stuart Chambers called the takeover deal “compelling”.
He added: “SoftBank has given assurances that it will invest considerably in the business, including doubling the UK headcount over the next five years and maintaining ARM’s unique culture and business model.”
The Chancellor Philip Hammond said the deal would “turn this great British company into a global phenomenon”.
He added: “This £24 billion investment would be the largest ever from Asia into the UK.
“Just three weeks after the referendum decision, it shows that Britain has lost none of its allure to international investors.
“Britain is open for business - and open to foreign investment.”
Masayoshi Son, chairman and chief exec of tech company SoftBank, said the investment marked its strong commitment to the UK, calling ARM “world-renowned and highly respected”.
On a more downbeat note ARM’s founder Hermann Hauser called it “a sad day for me” because ARM was the last UK tech company “that has a global reach”.
David Blacher, of business advisers RSM said: “There may be some shock in some quarters about the loss of ARM’s independence, and dismay that the UK is failing to establish its own tech giants to rival the likes of Google and Apple, but the mood music from the acquirer suggests they are committed to growing the UK business.”
Neil Wilson, markets analyst at ETX Capital, said sterling is “down around 10 per cent since the referendum (on June 23) and this makes British firms a lot more attractive.
“If this ARM deal is anything to go by, we can expect a torrent of deals to flow.”
South African High Street chain STEINHOFF last week moved to move POUNDLAND.
Prime Minister Theresa May vowed to defend British companies from foreign buyers - but called the ARM deal “a vote of confidence in Britain”.
