Japanese tech giant Softbank places a $32 billion bet on UK chip designer ARM, with a purchase offer that puts a 43 per cent premium on ARM's last share price. As Grace Pascoe reports, the deal would be Softbank's largest ever.
Britain is open for business. At least that's the message from the UK's new finance minister After Japan's SoftBank announce it's buying UK chip designer ARM Holdings. (SOUNDBITE) (English) BRITISH FINANCE MINISTER, PHILIP HAMMOND, SAYING: "The fact that a Japanese company just three weeks after the referendum decision is prepared to make this kind of commitment to the UK and commit to grow that business here in the UK is a resounding endorsement." SoftBank will pay 17 pounds per ARM share In a 32 billion dollar deal that sees SoftBank pay a massive 43 per cent premium to ARM's latest share price - just weeks after the UK's vote to leave the EU. (SOUNDBITE) (English) SOFTBANK FOUNDER, CHAIRMAN AND CEO, MASAYOSHI SON, SAYING: "Many people are concerned about this... political situation of UK, and some of my friends have businesses in UK, and they are very afraid. I am totally opposite. I say this is the time we invest. " The Japanese tech group is betting on internet-connected machines Apple, Samsung and Huawei already use ARM technology. The Brexit vote may help SoftBank afford it - after battering sterling and bolstering the yen. (SOUNDBITE) (English) NAB, GLOBAL HEAD FX STRATEGY, NICK PARSONS, SAYING: "I am sure there are other companies around the world who are currently running the ruler over possible acquisitions in the United Kingdom, simply because...the overseas cost of acquisition is substantially less that is was just a month ago." With SoftBank committing to keep ARM's HQ in Cambridge and to doubling employees in Britain. The two sides hope the deal will be a win win for both.