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Japanese swoop to buy UKs arm holdings

18 July 2016

Softbank has promised to double the number of UK staff at the smartphone chip designer over the next five years and retain its headquarters in the UK along with its existing management team. Chancellor of the Exchequer Philip Hammond said the takeover of the company, whose designs are used in billions of smartphones worldwide, represented the largest ever Asian investment in the UK and that the deal would “turn this great British company into a global phenomenon”. He added, “Just three weeks after the referendum decision, it shows that Britain has lost none of its allure to international investors. Britain is open for business – and open to foreign investment. “Softbank’s decision confirms that Britain remains one of the most attractive destinations globally for investors to create jobs and wealth. And as ARM’s founders will testify, this is the greatest place in the world to start and grow a technology business.” ARM Holdings, which started life as a small lab in a converted barn, has now grown into a company whose designs are found in 95 per cent of smartphones and which gets royalties every time clients such as Apple, Samsung and Qualcomm adopts one of its designs, which are known for their power-saving and efficiency. However, Sir Vince Cable, a former business secretary, told the BBC that he was “worried” by the foreign takeover of one of the UK pioneering tech companies. “This is the last of the home-grown British technology companies,” he said. “We don’t have a system of defence against takeovers if they turn out to be unsatisfactory.” source

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