SoftBank Delays ARM London Stock Market Listing Amid UK Political Turmoil

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Japanese SoftBank has temporarily postponed the London Stock Exchange listing of its semiconductor design subsidiary ARM, Bloomberg reported on the 18th (local time).

The report cited sources familiar with the matter, stating that SoftBank has temporarily halted discussions regarding ARM's listing. However, it plans to continue pursuing a listing in New York, USA.

SoftBank's decision reflects the recent political turmoil in the UK following Prime Minister Boris Johnson's resignation.

Previously, when SoftBank showed interest in ARM's Nasdaq listing in New York, UK government officials had been persuading SoftBank to list ARM on the London Stock Exchange. It is known that Prime Minister Boris Johnson also sent a letter to support this effort. Gary Grimstone, the Investment Minister who played a leading role in negotiations with SoftBank, is also among the officials who resigned.

A source explained, "SoftBank's stance that negotiations cannot proceed without a counterpart remains unchanged."

Meanwhile, in 2016, SoftBank acquired ARM by purchasing 1.412 billion shares held by ARM shareholders at 17 pounds per share, totaling 32 billion dollars (approximately 42 trillion won). ARM is headquartered in Cambridge, UK, and was considered the most important technology company in the UK before the acquisition. In September 2020, ARM signed a sale agreement with Nvidia in the US, but due to opposition from major competitors and failure to obtain approval from regulatory authorities worldwide, the acquisition and transfer agreement was terminated in February this year, just a year and a half later. Consequently, SoftBank planned to list ARM by the end of the 2022 fiscal year, by the end of March 2023.

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