Markets lifted by deal-making frenzy – business live
A flurry of M&A activity sees Nvidia buy ARM for $40bn, Gilead acquire Immunomedics for $21bn and TikTok team up with Oracle to avoid (it hopes) a US ban
7.59am BST
Hermann Hauser, ARM’s co-founder, says the sale of ARM to a US firm was an “absolute disaster for Cambridge, the UK and Europe”.
He warned that it would lead to job losses in the UK, destroy the UK firm’s business model and impinge on UK economic sovereignty. Any promises made on jobs are “meaningless unless they are legally enforceable,” pointing to the takeover of Cadbury by US company Kraft in 2010.
“The headquarters [will] move to the United States as they inevitably will when ARM becomes a division of Nvidia. This will lead to job losses in Cambridge, Manchester, Belfast, Warwick where ARM employs thousands of people.
Secondly, Nvidia will destroy ARM’s business model… which is being the Switzerland of the semiconductor industry of dealing with over 500 licensees, most of which are competitors of Nvidia.
“Which means that if hundreds of UK companies that incorporate ARM in their products want to export it to anywhere in the world including to China which is a major market, this decision on whether they are allowed to export it will be made in the White House, and not in Downing Street.”
https://t.co/3husABs2lg ARM, crown jewel of UK tech, sold on by Softbank to Nvidia for $40billion. Deal described by cofounder Hermann Hauser as a disaster – he’s writing to 10 Downing Street warning it will destroy the firm’s business model and make Britain “a US vassal state.”
7.36am BST
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The City has woken up to an dealmaking frenzy this morning, with three tie-ups with serious ramifications well beyond the markets being announced.
The Washington Post reported that Oracle had been chosen by ByteDance as a ‘“technology partner” to allay US concerns, and Reuters quoted a source as saying it would be a restructuring rather than a sale, with Oracle handling TikTok’s US user data. The source did not disclose how much of TikTok’s US operations ByteDance and its investors would continue to own.
ByteDance will need approval for the deal from both Washington and Beijing. It is not clear whether Trump, who wants a US technology company to own most of TikTok in the United States, will approve the proposal.
Related: TikTok: ByteDance ‘to partner with Oracle’ in US after rejecting Microsoft bid
https://t.co/3husABs2lg ARM, crown jewel of UK tech, sold on by Softbank to Nvidia for $40billion. Deal described by cofounder Hermann Hauser as a disaster – he’s writing to 10 Downing Street warning it will destroy the firm’s business model and make Britain “a US vassal state.”
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