MPs call for tech firm Arm to be floated in UK
POLITICIANS are calling for the foreign owner of technology giant Arm Holdings to float the company on the London Stock Exchange to return stewardship of the £30billion business to Britain.
Japanese multinational SoftBank – chaired by billionaire Masayoshi Son – bought the UK chip designer five years ago.
It has been locked in protracted talks to sell Arm to US semiconductor giant Nvidia, but the deal now looks
close to collapse. Nvidia has indicated that it does not expect the negotiations to complete following a fierce backlash from regulators across the world.
In November, the UK Government ordered a full investigation into the tie-up on national security grounds, adding to doubts over the sale.
MPs last week spoke out to call for Arm to stay in Britain on the grounds of national security.
There is resistance within SoftBank and Arm itself to a stock market listing and it is understood that this is regarded as a Plan B should the Nvidia deal collapse.
Arm employs about 3,000 people in Cambridge. If it listed in London, it would be one of the largest companies in the FTSE100 index.
However, SoftBank may instead seek to float the pioneering and strategically important company in New York.
Anthony Browne, the Conservative MP for Cambridge South, said: ‘Arm is a leading British technology company of national strategic importance and a major local employer.
‘If it is floated on the stock market, it should do so in London rather than New York or elsewhere to ensure its interests and those of its investors are aligned with our national interest.
‘Ownership matters – particularly of such strategically important companies,’ he added.
Damian Green, Tory MP for Ashford, said: ‘Arm Holdings is a world-beating British company that should stay British. I would very much hope that if it lists anywhere it does so in London.’
The planned sale comes at a time when electronics manufacturers are struggling due to microchip shortages.
SoftBank was approached for comment.