Japanese telecommunications and internet company Softbank is looking to acquire UK-based chip maker ARM and has reportedly bidded USD32 billion to buy it.
According ot a report from the Wall Street Journal, this all-cash deal between Softbank and ARM has already been reached, but the announcement of the acquisition will only be made later today just before the opening of trade in London. Softbank’s acquisition of ARM comes on the heels of SoftBank Chief Executive Masayoshi Son’s decision to take back the reins of the company’s investment strategy after the resignation of Nikesh Arora in June.
Softbank’s acquisition of ARM comes shortly after the U.K.’s decision to leave the European Union, causing the British Pound to drop in value. This drop in value may have been a key contributor to Softbank’s decision to buy ARM. That said, it remains to be seen if the deal between Softbank and ARM could be completed without any hiccups. Current British Prime Minister Theresa May has addressed the potential of foreign takeovers of leading U.K. companies in a speech she gave just before taking over from David Cameron, so there is a possibility that the Softbank-ARM deal may run into complications soon.
Source: The Wall Street Journal