Economy, Sci & Tech

Japan to Buy British Chipmaker for $32b

Japan to Buy British Chipmaker for $32bJapan to Buy British Chipmaker for $32b

Britain's ARM electronic chip manufacturer said it did not consult its partners such as Apple, Samsung and Qualcomm that use its technology in billions of chips before agreeing to a $32 billion takeover from Japan's Softbank.

Chief Executive Simon Segars said, as is customary in takeovers, only a small number of people were involved in the talks, Reuters reported.

"This is about a decision that a board ultimately needs to take and the board is there to make sure that the interests of all stakeholders are maintained," he told Reuters on Monday.

"So no, we weren't out consulting with our customers. We believe this is going to be a great thing for ARM, our partners, our employees, our shareholders and that's the judgment we've taken."

Segars also said Softbank's pledge to double ARM's workforce in Britain, adding anther 1,600 staff, would be legally binding in the final paperwork.

Britain's Prime Minister Theresa May said on Monday that Softbank's decision to buy the chip designer showed Britain's economy could be successful after the country voted to leave the European Union. Welcoming the deal as a boost for British jobs and the economy, a spokeswoman for the premier said May believed the deal was in the country's national interest—a gauge she will use in all future foreign takeovers.

"This is good news for British workers; it's good news for the British economy. It shows that, as the prime minister has been saying, we can make a success of leaving the European Union," the spokeswoman said.