Why England is giving heart and soul to list Arm in London

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SoftBank wants to re-list Arm. He must choose between London and New York, or both at the same time.

Why England is giving heart-and-soul to list Arm in London

< p>Today, if you use a smartphone, whether iOS or Android, it embeds Arm technologies. This company, based in Cambridge, UK, does not manufacture chips. Nevertheless, it provides the architectures that allow Apple, Qualcomm, Mediatek and Samsung to design their smartphone processors. And besides, Arm also provides architectures for other industries, including the computer industry.

Arm's current owner is Japanese conglomerate Softbank, which bought it for $32 billion in 2016 (before that, it was a London-listed company). In 2020, SoftBank had reached an agreement with Nvidia to sell Arm to the American company for 40 billion dollars. But ultimately, that deal fell through, due to regulatory hurdles. And now SoftBank is looking to re-list Arm.

London insists on listing Arm

In an article published on Monday, the Financial Times explains that for this re-listing of Arm, SoftBank's preference would be New York. Nevertheless, the British authorities insist that London also has a role to play. The subject was dropped due to the political unrest that affected the United Kingdom. But now Prime Minister Rishi Sunak has revived the government's efforts.

In December, a meeting was reportedly held in Downing Street between the Prime Minister, Arm CEO Rene Haas, and Masayoshi Son, founder of SoftBank (via videoconference). And according to Financial Time sources, these meetings would have been “constructive”.

A positive signal for the London stock exchange

The idea of ​​the British government, at the Liz Truss' time, was that Arm was both listed in New York and on the London Stock Exchange. And if for the moment, no decision seems to have been made on the subject, London could find it difficult to convince SoftBank, insofar as the proposed solution would be expensive and complex.

But why Arm is- it so important for the UK? According to the explanations of the Financial Time, under the leadership of Boris Johnson, the British government has begun a series of reforms with the aim of making the London Stock Exchange an alternative to Wall Street for IPOs in the tech world. .

And Arm's IPO could be a “vote of confidence” for the British capital and for this project, if the government manages to convince SoftBank.

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