British chip firm known as Arm picks New York listing in a blow to London

March 6, 2023: British chip designer Arm, owned by Japan’s SoftBank, and building materials firms CRH plan to ignore London and get stock market listings in the U.S., which deals a blast to the U.K.’s post-Brexit picture.

On Friday, Arm said it sought to pursue a U.S.-only listing this year. It comes following CRH, one of the FTSE 100′s biggest firms, said it plans to move its primary stock market listing to New York.

The news will likely bolster fears that the U.K. stock market is losing out to international rivals.

“After engagement with the British Government and more than several months, SoftBank and Arm have determined that getting a U.S.-only listing of Arm is the best path forward for the firm and its stakeholders,” Arm CEO Rene Haas stated in a statement.

Arm did not wholly rule out the possibility of things in London in the future, which state it was “proud of its British heritage” and may think of a subsequent listing in the U.K. at a date.

The outcome comes despite intensive lobbying by the British administration to persuade the chip designer to state its shares in the U.K. capital. With 6,000 staff internationally and 3,000 based in the U.K., Cambridge-based Arm is regarded as the jewel in the British tech firm’s crown.

The firm is a significant force in the semiconductor market, which listens to its microchip patterns to some of the largest consumer tech manufacturers in the world. Nearly 95% of smartphones globally, including the Apple iPhone, contain Arm-based processors.

London has relaxed its listings rules to attract leading global tech firms to go public in the U.K. It encounters barriers, with venture capitalists complaining of a need for more understanding of often loss-making tech ventures.

“The U.K. is taking forward ambitious is making to the rules governing its capital markets, making on our continued success as Europe’s leading hub for investment, and the second significant globally,” a U.K. Treasury spokesperson stated.

“We continue to draw some of the most creative and significant companies and note Arm’s commitment to expanding its presence in the U.K., boosting growth, jobs and investment.”