Tech Nation has said that the UK needs to do more to keep British technology companies in Britain.

After the collapse of its planned sale to Nvidia, Arm’s parent company SoftBank reportedly said that a US listing would be most suitable.

Last month the semiconductor giant revealed it could be axing up to 975 roles following the collapsed sale.

https://nationaltechnology.co.uk/Arm_Could_Cut_15pc_Of_Workforce_After_Nvidia_Sale_Collapse.php

In February, SoftBank, which currently owns Arm, said the deal had been officially ended due to “significant regulatory challenges”.

SoftBank first agreed to sell Arm to the US chip maker in September 2020, but the deal has been beset by regulatory scrutiny since then.

In August, the Competition and Markets Authority (CMA) recommended an in-depth probe into Nvidia’s takeover of Arm.

The competition watchdog said that the merged business would have a “significant degree of control over key technologies for a range of sectors,” including artificial intelligence.

SoftBank said that Arm would now list publicly before the end of its financial year ending 31 March 2023.

“The UK is world-class at cultivating start-ups and scale-ups, helping them to become the new generation of global companies, like Cambridge-based Arm,” said Stephen Kelly, chair of Tech Nation, commenting on UK tech listings in light of Arm’s upcoming IPO. “However, talks about Arm listing in New York highlight that there is more work that can be done to innovate and align the broad ecosystem to ensure we don’t waste the opportunity that the tech sector offers, to remain competitive, and to ensure these companies stay in the UK.”

The Tech Nation chair added that the Lord Hill review provides an “excellent start and direction of travel for the UK as a global digital powerhouse, providing speed, reform and simplification of the process, with a healthy balance of safeguards”.

“Changes such as improving corporate governance regulations, freeing up the premium listing segment and getting the UK investment community behind growth stocks will all send a big message globally that the UK remains on the front foot,” said Kelly. “They will demonstrate the UK’s winning combination of high regulatory standards and governance with flexibility and nimbleness.”

According to a report by The Guardian, the prime minister has joined the lobbying effort to persuade the UK business to list in London.

The Financial Times said that London Stock Exchange execs, several government departments, and senior officials have already been lobbying the business.

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