Business Secretary Peter Kyle Confirms He Would Block Sale of UK Chip Designer Arm Holdings
Business Secretary Peter Kyle declared he would have blocked the 2016 sale of Arm Holdings, the UK microchip design firm, had he been in office. Kyle contended that Arm Holdings, now valued at £285 billion on the New York Stock Exchange, could have been the largest company on the London Stock Exchange, potentially fulfilling “40% of the way there to the trillion-dollar company I think our country needs”.
His comments align with the government's strategy to bolster British technology companies, as US tech giants prepare for major share sales. Arm Holdings, originally listed in London, was acquired by Japan's Softbank a decade ago for £24 billion.
Kyle also voiced regret over Google's 2014 acquisition of pioneering UK AI company DeepMind, noting that while it continues to operate in the UK, “the wealth that it has created is going elsewhere”. Speaking at London Tech Week, Kyle outlined government initiatives aimed at attracting and retaining fast-growing technology companies within the UK.
“We need to learn from these experiences,” Kyle stated. He emphasised a desire to create conditions that prevent companies from wanting to leave, rather than solely relying on interventionist blocking powers. The government, he indicated, is prepared to make larger investments of taxpayer money in promising companies and establish a cross-government concierge service to support businesses with skills, finance, and other requirements.
“I've upped the risk threshold,” Kyle affirmed, distinguishing between the risks of caution hindering AI development and potential missteps from active engagement. He affirmed a preference for the latter. Recent government investments include Kraken, a software company, self-driving firm Wayve, and the UK tech-focused investment fund Playground Global.
Despite this focus on technology, Kyle acknowledged difficulties in other sectors, particularly hospitality, which faces increased national living wage and National Insurance contributions. He pointed to a phased implementation of business rate rises for pubs as a measure to ease pressure. Kyle also addressed concerns raised by former Health Secretary Alan Milburn regarding over a million young people not in employment, education, or training, stating the government is collaborating with Milburn to tackle these “structural challenges”.
