Top British technology firm will be sold off to Japanese

CUTTING-EDGE British technology firm ARM Holdings is to fall into Japanese hands after shareholders approved a £24billion takeover yesterday.

In a blow for the UK tech industry, 95 per cent of the firm’s investors voted in favour of the deal, which will see the microchip designer sold to the SoftBank conglomerate.

The Japanese company – owned by the country’s second richest man, masayoshi Son – has promised to double ARM’s 1,700-strong British staff and maintain its HQ in cambridge. But critics questioned yesterday whether SoftBank would be able to honour its pledges.

Former city minister Lord myners said the tieup was ‘selling out our winners’, and called on the Government to ‘get a grip’ and toughen up takeover measures.

He added: ‘We have the most permissive takeover rules in the world. our future lies with hi-tech companies and high value-added manufacturers. We are leaders, and a firm like ARM forms the centre of a cluster. other businesses are completely built up around ARM to support it.’

nico macdonald, of the Research and Development Society, said: ‘most companies that have been built in the digital sector in the last 20 years have been acquired by non-UK companies.’

He warned that unless the UK found a more imaginative way to fund research, young firms

‘Selling out our winners’

would not thrive, adding: ‘The UK has built itself on being a case where foreign investment is encouraged, and ARM needed more investment.’

ARM Holdings designs low-power chips for 95 per cent of smartphones, as well as smart TVs, smartwatches and tablets. considered a major national asset, it is at the forefront of the next tech boom, the so-called ‘internet of things’ that will connect all household devices.

Arm founder Hermann Hauser said: ‘I regret the fact we have lost our last independent hi-tech company with a global reach. There was no reason for change. It had £1billion of cash.’

Lord myners said investors acted rationally after being offered well above the share price, but the sale was ‘bad news’ for the British economy. SoftBank’s offer of £17 a share is 43 per cent higher than before the deal was announced.

He warned: ‘They say the headquarters will remain in cambridge, but the big decisions on research and development will be made in Japan. one would expect SoftBank to optimise its tax arrangements with a structure where it won’t pay UK tax.’

He also questioned SoftBank’s stability, pointing to debt of up to £90billion.

Prime minister Theresa may said last month that the deal – which is expected to be ratified on monday – showed Britain was ‘open for business’.

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