iPhone Chip Maker ARM In £24bn Takeover Deal

The British company which makes microchips for iPhones is to be bought by Japanese conglomerate SoftBank in a £24.3bn deal.

The most valuable tech company listed in the UK, Cambridge-based ARM Holdings (LSE: ARM.L - news) supplies the technology for Apple (NasdaqGS: AAPL - news) and Samsung mobile phones.

SoftBank is offering to pay £17 for every ARM share.

The board of ARM has recommended shareholders accept the offer - which represents a 43% premium on its closing market value of £16.8bn on Friday.

SoftBank has pledged to preserve ARM's existing management team, maintain its headquarters in Cambridge, at least double the number of employees in the UK over the next five years and increase its overseas workforce too.

It is one of the largest European technology deals ever.

Chancellor Philip Hammond welcomed the deal saying: "This £24bn investment would be the largest ever from Asia into the UK.

"It would … turn this great British company into a global phenomenon.

"Just three weeks after the referendum decision, it shows that Britain has lost none of its allure to international investors.

"Britain is open for business - and open to foreign investment.

"And as ARM's founders will testify, this is the greatest place in the world to start and grow a technology business."

The deal comes after warnings that the UK would not be able to attract overseas investment if it left the EU.

New Prime Minister Theresa May said when she launched her leadership bid that she was committed to "defending" British companies from foreign takeovers that are not in the national interest.

Stuart Chambers, ARM's chairman, said: "The board of ARM is reassured that ARM will remain a very significant UK business and will continue to play a key role in the development of new technology.

"SoftBank has given assurances that it will invest considerably in the business, including doubling the UK headcount over the next five years and maintaining ARM's unique culture and business model."