UK chipmaker branch could return to London’s stock market if £ 29bn falls through Nvidia deal
Analysts have claimed that Arm could return to the stock market if its £ 29billion sales fall.
Japanese owner Softbank is in the process of selling the British chipmaker to US giant Nvidia, but the deal is beset by regulatory hurdles.
There is a growing shortage of computer chips worldwide, with some analysts suggesting that SoftBank may find it easier – and more attractive – to re-list the arm.
There is a growing shortage of computer chips around the world, with some analysts now suggesting that arm owner Softbank may find it easier to re-list on the London Stock Market
Nvidia says it has always expected strict scrutiny from regulators and has incorporated this into its plans.
But a new security investigation into the sale by UK authorities, calls for regulators to block it altogether in China and opposition from some of Arm’s customers has led some to liquidate.
Matthew Byatt, AQIT Advisors’ managing partner and semiconductor expert, said that Nvidia’s takeover is’ facing severe headwinds that are strengthening. ‘
But he said there is a strong case for SoftBank to switch to an Initial Public Offering (IPO) – or rather – to Arm.
Bayat said: ‘All the fuss about the arm deal, in fact, is that the value of the company lies in its independence.
‘So now an IPO could be the best result for shareholders, customers and the UK.’
Neil Kampling, an analyst at Mirabod Securities, said that if the IPO helps achieve large returns, SoftBank could also become the ‘real winner’.
When the Japanese firm bought it in 2016, the arm was valued at £ 24. Some analysts estimated its price to rise to £ 40 billion last year – much higher than what Nvidia had offered.
On Monday, the government announced that it was reviewing the national security implications of the Nvidia deal, which is at the helm of an ongoing competition investigation.