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China: SoftBank’s sells Arm’s China ops for US$775m

By  |  June 5, 2018

SoftBank Group, the owner of British chip design company Arm, will cede control of Arm’s Chinese operations and the unit will be run as a joint venture with Chinese partners.

Cambridge-headquartered Arm said that it would sell 51 % of its Chinese business, Arm China, for $775.2m. The transaction is expected at end of June.

SoftBank said that will sell off Arm’s Chinese division in order to expand further into China through its new joint venture. It said that it saw the Chinese market as “valuable and distinctive from the rest of the world”.

“Arm believes this joint venture, which will license Arm semiconductor technology to Chinese companies and locally develop Arm technology in China, will expand Arm’s opportunities in the Chinese market,” SoftBank said.

According to the source, the consortium led by Hou An will be a controlling shareholder in the JV.

Full Content: Reuters

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