MPS call for action as Arm’s deal with US rival Nvidia edges closer
By Matthew Field THE Government should intervene in Arm’s potential sale to US chip firm Nvidia to ensure that British jobs and its Cambridge headquarters are protected, MPS have urged.
Talks between UK chip designer Arm and US firm Nvidia are accelerating with a $40bn (£30bn) deal expected to be thrashed out by the end of the month. Negotiations between the Cambridge microprocessor designer, which is owned by Japan’s Softbank, and Nvidia, the Silicon Valley firm that builds graphics chips, are understood to have been exclusive for the last fortnight. Arm’s designs are used in billions of chips in nearly every smartphone and other gadgets.
The exclusivity period is expected to last 30 to 45 days, after which the companies would walk away or the talks would open to other parties.
However, the deal has resurfaced an agreement made between Britain’s
Takeover Panel and Softbank that said Arm’s headquarters would remain at its base in Cherry Hinton in Cambridge and double UK staff numbers to around 3,500 by 2021.
Daniel Zeichner, the Labour MP for Cambridge, told The Daily Telegraph the Government should ensure these terms were enforced in the event of a sale. He said: “Arm is an iconic company. So far, Softbank have kept to the post-offer undertaking. [Staff ] numbers have risen in Cambridge. But now it is not clear. If they do not roll them over then what was the point of them?”
Earlier this week, Mr Zeichner wrote to Alok Sharma, the Business Secretary, asking for assurances that Arm would not be sold again and that the Government should encourage a UK bid to take control of at least 50pc of the firm.
An Arm spokesman declined to comment on whether the undertakings would carry on in the event of a sale. Softbank and Nvidia declined to comment. It is understood the Government is monitoring progress, although since Arm would be sold to a US company, it would almost certainly not raise national security concerns, despite its highly strategic technology.
Chi Onwurah, Labour shadow minister for science, said: “It is being sold to a competing company with competing interests and we don’t have any assurances. The Government should be doing something.”
She added the UK should tap other industry players and investors who would consider a buyout that would keep Arm’s headquarters in Britain.
Sources said Softbank boss Masayoshi Son was seeking a price tag of around $40bn for Arm. It snapped up the former blue-chip company for £24bn in 2016.
The Evening Standard reported yesterday a deal was “on course to be complete by the end of the summer”. Arm said it did not comment on rumours or speculation.