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The Financial Times reported on Monday that UK Prime Minister Boris Johnson has backed a final drive to persuade SoftBank Group Corp-backed chip designer Arm to list in London, citing people familiar with the subject.

Johnson has written to SoftBank executives in a last-ditch effort according to the story. At the same time, ministers and officials from the London Stock Exchange (LSE) attempt to persuade the Japanese corporation to reconsider its preference for a New York listing.

The Nvidia deal

According to the source, SoftBank executives are set to meet with Digital Minister Chris Philp and Minister for Investment Gerry Grimstone, who are leading the lobbying efforts.

According to the Financial Times, two people familiar with SoftBank’s reasoning said there was very little chance of modifying plans and listing in London.

SoftBank postponed the sale of Arm Ltd to Nvidia in a transaction worth up to $80 billion in February, citing regulatory concerns, and instead chose to list the business. In early February, SoftBank shelved its blockbuster sale of Arm to Nvidia in a deal valued at up to $80 billion.

The fallout

Arm then named a new CEO and announced then that it would go public before March 2023 and Masayoshi Son (SoftBank CEO) said that it would do that in the United States, possibly on the Nasdaq.

The sale’s failure proved to be a big blow to the Japanese conglomerate’s ambitions to raise capital at a time when its portfolio’s values are under pressure.

Many SoftBank portfolio businesses are trading below their initial public offering (IPO) prices, with WeWork, Grab, and Auto1 all falling in the previous quarter.