UK government under pressure to intervene in Arm sale to Nvidia | Business

The government is under pressure to intervene in the $40bn (£31bn) takeover of the UK’s biggest tech company, Arm Holdings, after Labour, trade unions and the company’s co-founder voiced concerns about the deal.

The US software firm Nvidia said on Monday it had agreed to buy Cambridge-based Arm, a global leader in designing chips for smartphones, computers and tablets, from Japan’s SoftBank.

If the deal goes ahead SoftBank, a technology investment firm, stands to make an $8bn profit just four years after buying Arm for $32bn in a transaction that was cheaper thanks to the fall in value of sterling after the 2016 Brexit vote.

But the Labour party, the science and technology workers’ union Prospect and Arm co-founder Hermann Hauser have called on the government to deploy its powers to block foreign takeovers, or attach conditions to them.

Asked how a sale would fit in to plans by Boris

Read More

Labour calls for UK jobs guarantee in potential Arm sale to Nvidia

a sign on the side of a building: Photograph: Bloomberg/Getty Images

© Provided by The Guardian
Photograph: Bloomberg/Getty Images

The Labour party has called on the government to intervene to prevent parts of the microchip designer Arm from being moved out of the UK if it is bought by the US chipmaker Nvidia.

Ed Miliband, the shadow business secretary, said the government should seek “legally binding assurances” from Nvidia that it would not move Arm’s headquarters out of Cambridge.

Arm, the UK’s most valuable tech company, could be sold by its owner, SoftBank, to Nvidia for more than $32bn (£25bn), according to reports that first emerged in July.

Arm designs chips that are adapted by manufacturers and used in most mobile phones as well as computers and, increasingly, devices connected to the “internet of things”.

Apple uses Arm-based chips in its iPhones, and in June it said it would move to Arm’s architecture for its Mac computers, in a blow to

Read More

SoftBank’s Arm sale hits a snag as UK opposition party warns of risks

SAM YEH | AFP | Getty Images

The U.K.’s opposition Labour party said this week that an Arm takeover is not in the public interest and criticized the ruling Conservative Party for failing to protect the British chip designer — often hailed as one of the nation’s most innovative firms — from overseas predators.

Arm’s chips are used by companies around the globe to power millions of electrical devices. Apple uses them in iPhones and iPads, while Amazon uses them in Kindles, and car manufacturers use them in vehicles. The company has 6,000 staff globally and 3,000 of those are in the U.K.

Ed Miliband, the shadow business secretary, warned that an Arm takeover by a Silicon Valley firm would ultimately lead to U.K. jobs moving overseas.

A government spokesperson said that Downing Street monitors proposed acquisitions closely. “Where we feel a takeover may represent a threat to the UK,

Read More