Monday, July 18, 2016

The Japanese SoftBank buy the British pound devalued leveraging ARM – swissinfo.ch

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the president of Japanese giant SoftBank, Masayoshi Son ( left), and President of the British company ARM, Stuart Chambers, next to the 11 Downing Street in London on July 18, 2016, after a meeting with Finance Minister British

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the Japanese giant SoftBank telecom will buy the British manufacturer of ARM microprocessors by 24,300 million pounds in an operation facilitated by the devaluation of the pound sterling because of Brexit.

the operation in cash, for an amount equivalent to 32,000 million or 29,000 million euros at current exchange rates, was approved unanimously by the board of Directors of ARM, they indicated both groups in a joint statement.

the announcement of the first major merger / acquisition after the referendum in which the British decided to leave the European Union (EU) was greeted with euphoria in the London Stock Exchange, where the action of ARM gained more than 40%.

“We admire long to ARM as a highly reputed firm of industry-leading technology sector,” he said in the statement the president of Softbank, Masayoshi Son .

“it’s one of our major acquisitions and ARM should become an important pillar of the growth strategy of Softbank,” said

.

the investment will in particular venture into “the increasingly significant internet of things opportunities, “he added, referring to the booming sector of objects connected in homes and in business.

ARM, which provides components for iPhone Apple, as well as teams from Samsung or Huawei, was considered by analysts as a very attractive for large investment company.

the chipmaker, founded in 1990, currently it employs 4,000 people around the world. It is estimated that 95% of mobile phones use their technologies, like 80% of digital cameras and 35% of all electronic devices.

SoftBank signaled its intention to keep the seat ARM in the university city of Cambridge and “at least double” the staff of the firm in the UK in the next five years

-. UK ‘did not lose its attractive’ –

These guarantees will probably intended to appease the concerns of the new British Prime Minister, Theresa May, who urged develop a “real industrial strategy” to prevent some of the jewels of the British crown from falling into foreign hands.

the conservative leader also criticized in recent times the governments precedent for letting the American Kraft was made with confectioner Cadbury or have observed unreacted attempted purchase of AstraZeneca laboratory by pharmaceutical giant American Pfizer.

Philip Hammond, British finance minister said Monday the importance of the acquisition of ARM, “the largest Asian investment” in the country, which contrasts with warnings about the negative impacts of Brexit.

“Just three weeks after the referendum, this shows that Britain has lost none of its attractiveness to international investors,” he said.

analysts estimate that the operation is part of a true industrial logic, but the weakness of sterling against the dollar, which grew from the referendum, increased interest of foreign companies by British companies.

“we can see in this operation the effect of Brexit and the collapse of the pound, which makes British firms easy targets, “said Neil Wilson, an analyst at brokerage ETX Capital.

” Many more British firms could pass into foreign hands quickly, “he added, also mentioning the acquisition last week of chain stores inexpensive Poundland by the South African holding Steinhoff International for 597 million pounds.

the acquisition announced Monday, Softbank offered 17 pounds a share of ARM, valuing it at 43% above its closing price on Friday (at 11.89 pounds).

the announcement triggered the price of ARM on the London stock Exchange, which 08H24 GMT toward gained 40.92%, in a market that evolved rising 0.44%.

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