UK tech giant set to list in US after sale fails

Japanese owner of Arm Holdings mulls Nasdaq after deal with Nvidia collapses

The Japanese owner of one of the world's top technology companies may list it in the United States after attempts to sell it in its native Britain hit regulatory roadblocks.

SoftBank had wanted to sell Cambridge-based semiconductor and software design company Arm Holdings to US chip-making giant Nvidia for $54 billion.

But, after 18 months of work, the proposed transaction has fallen through.

The Financial Times newspaper reported on Wednesday the conglomerate now intends to list the company in the US, with SoftBank's chief executive, Masayoshi Son, saying: "I believe that Arm is about to enter its golden age and so, deep down, I would rather avoid this sale as much as possible."

He said the Nasdaq stock exchange, "which is at the center of global high-tech, would be most suitable (for a listing)".

The Associated Press quoted Son as saying: "Arm is back. Rather than just being back, it's really going to grow explosively."

Rene Haas, Arm's newly appointed chief executive, told the Financial Times he believes the company is set for a period of quick development.

"We're entering a really unique super cycle of growth for semiconductors and computers," he said, pointing to a global shortage of chips and the fast growth of electric vehicles as reasons for optimism.

SoftBank bought Arm Holdings in 2016, soon after UK voters decided in a referendum the nation should leave the EU.

Theresa May, the UK's prime minister at the time, hailed the $32-billion sale as a sign of Britain's global attractiveness.

But several UK technology investors and entrepreneurs criticized the subsequent proposed sale of the British company to its US rival.

The FT said the notion "sparked a furor" in the UK because it was "experiencing deep insecurities about its ability to retain homegrown technology champions".

The deal to sell Arm to Nvidia stalled following regulatory pushback from around the world, including the UK, where national security concerns were cited.

The Federal Trade Commission in the US also balked at the proposed deal, citing competition concerns.

European Union regulators also had problems with it.

The BBC noted that, despite the proposed sale falling through, Soft-Bank will keep a $1.25 billion nonrefundable deposit paid by Nvidia.

Jensen Huang, Nvidia's CEO, said his company and Arm Holdings still plan to work closely together in the years to come.

Arm Holdings licenses its technology to companies including Apple, Samsung, and Qualcomm; and the BBC said its designs are found in a massive proportion of the world's mobile phones, tablets, and digital TVs.

The FT noted that the London Stock Exchange is likely to now enter into talks with Arm and its Japanese owner in the hope of seeing the company listed in the UK, either instead of or as well as the US.