Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

After handing the strategic company to China, Boris Johnson finally joins lobbying for UK chip designer Arm to list in London

After handing the strategic company to China, Boris Johnson finally joins lobbying for UK chip designer Arm to list in London

Government fears damage of losing out to New York in battle to attract tech floatations, after losing it previously to China.
Boris Johnson has joined the lobbying effort to convince the British-based chip designer Arm to float in London, as the government fears the damage of losing out to New York in the battle to attract high-profile tech companies looking to list.

After the collapse of the $66bn sale of the Cambridge-based business to US-based Nvidia earlier this year, Masayoshi Son, the chief executive of Arm’s Japanese parent company Softbank, immediately snubbed the UK for a flotation.

“We think that the Nasdaq stock exchange in the US, which is at the centre of global hi-tech, would be most suitable,” he said in February.

Johnson has joined the lobbying efforts already under way by London Stock Exchange executives and a number of government departments and senior officials, writing a letter to Softbank executives, according to the Financial Times.

The effort includes the Department for Digital, Culture, Media and Sport (DCMS), the Treasury, the business department as well as Downing Street. The digital minister Chris Philp and Gerry Grimstone, the former Barclays chair who now heads the UK’s Office for Investment, are leading the lobbying efforts.

While the chances of changing SoftBank’s mind are considered slim, Arm has previously had a dual listing on both sides of the Atlantic, before it was acquired by the Japanese company for £24.6bn in 2016.

Arm had been a member of the FTSE 100 for 18 years and winning it back would be a huge boost for the capital’s longer-term ambitions to have more tech flotations, while losing it would be a big blow to that goal.

Analysts are estimating that Arm would float with a market value of $30bn to $40bn, which would make it the largest tech company on the London Stock Exchange, more than twice the size of the current leader, Ocado. At that scale, Arm would also rank between the 19th and 24th largest listed company in the UK.

A government spokesperson said: “We want to make the UK the most attractive place for innovative businesses to grow and raise capital.” SoftBank, Arm and the LSE declined to comment.

In December, Paul Marshall, the chairman of the investment manager Marshall Wallace, said the UK and European stock markets were becoming the “Jurassic Park” of global stock exchanges.

He wrote in the Financial Times: “The UK stock market is becoming a global backwater as US and Chinese markets forge ahead. It has largely failed to take part in the global rally that began in 2015. We are reaching the point where companies may decide we should simply all agree on a single global exchange, trading 24 hours and located in New York.”

Last year new rules were introduced to try to make London more attractive to tech companies, including allowing dual share class structures, which give founders more control after they float a business, and reducing the amount of shares required to be offered to the public to 10%.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×