In 2013, former prime minister David Cameron claimed British firms should embrace foreign takeovers rather than fear them. He said: “I know some people look at foreign companies investing in our businesses, financing our infrastructure or taking over our football clubs and ask – shouldn’t we do something to stop it?“The answer is ‘no’. One of Britain’s unique selling points is its openness and this openness is a vital part of how we ensure our country is a great success story in the global race. Foreign investment creates wealth, jobs and growth. And far from weakening our industrial base, that investment actually strengthens it.” However, this is not a view his replacement, Theresa May, shares with him. In fact, May was amongst those wanting to block the German takeover of the London Stock Exchange – and has even pledged to introduce “a proper industrial strategy” to prevent further takeover attempts of UK firms. But days after her speech on the subject, ARM Holdings has announced it will be acquired by SoftBank. This is one of the most important acquisition for SoftBank, said founder Masayoshi Son, who suggested ARM would be a key pillar to the company’s growth strategy going forward. Read more about the world of M&A:
- M&A is booming globally – but why are UK companies left out?
- Acquisitions are like sex and driving – most people think they know what they’re doing
- Deal uncovered: Inside look at the Unruly acquisition by News Corp
He further added: “Softbank’s decision confirms the UK has remained an attractive destination globally for investors t create jobs and wealth. And as ARM’s founders will testify, this is the greatest place in the world to start and grow a technology business.” Image: Shutterstock Since the turn of the decade, Servest has made eight acquisitions – six of which it deemed to be major. As such, we asked its CFO, Phil Morris, to discuss the valuation process and the factors that play a vital role in M&As. By Shané Schutte
This would be largest ever Asian investment into the UK & would double size of ARM’s UK workforce.Big vote of confidence in British business— Philip Hammond (@PHammondMP) July 18, 2016
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