Pablo Valerio, International Business & IT Consultant
EETimes (7/22/2016 00:00 AM EDT)
The deal could also face hard scrutiny by the European Commission, which is now becoming more critical about consolidation in the technology sector.
This week's biggest business news is the £24.3 billion ($32b) proposed acquisition of ARM technologies by the Japanese group SoftBank. While the UK government initially praised the deal as an indication of the strength of Britain’s technology sector after the Brexit vote, some public officials are now raising concerns that it could be the beginning of “cheap” takeovers of the UK’s most valuable companies.
In fact, just before taking office last week, Prime Minister Theresa May said the British government would be keeping a close eye on foreign takeovers, arguing that foreign buyers should not have an unfettered right to acquire U.K. companies in "strategic" industries, as the lower price of the pound and the uncertainty about Britain’s relationship with the European Union after the Brexit vote could affect the valuation of many lucrative businesses in the country.
Britain's new Chancellor of the Exchequer (Treasury Secretary), Philip Hammond, however, said the deal is a strong indication that the UK is very attractive to foreign investors after Brexit. (See ARM's chairman was appointed to UK takeover committee.)
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