Sunak says private equity M&A shows confidence in UK economy By Reuters

0
21
© Reuters. FILE PHOTO: Britain’s Chancellor of the Exchequer Rishi Sunak meets U.S. Treasury Secretary Janet Yellen (not pictured), in London, Britain June 3, 2021. REUTERS/Hannah McKay/File Photo

LONDON (Reuters) -British finance minister Rishi Sunak said on Tuesday that private equity firms’ interest in British listed companies reflected well on the economy, but added that he wanted to make it easier for new businesses to list on the stock market.

“I would view it as a sign of confidence in the UK economy,” he said when asked whether there were long-term dangers to businesses being taken private.

“If international investors, whoever they are, are keen to invest their capital in the UK, that is something that is good news for our economy. And that’s what you’re seeing,” he told reporters at a conference to promote technology companies.

British supermarket Morrisons is currently at the centre of a battle between two U.S. private equity firms, while U.S. chipmaker Nvidia (NASDAQ:) is seeking regulatory approval in Britain and elsewhere for its purchase British chip designer ARM, which was bought by Japan’s SoftBank in 2016.

Asked about whether he would prefer to see ARM listed as an independent company in Britain, Sunak said he could not comment specifically due to the ongoing regulatory process.

“Whether it is ARM or anyone else, I want to make (Britain) an incredibly attractive place for companies to raise capital,” Sunak said.

Britain has already taken steps to allow structures such as special purpose acquisition companies and dual-class listings which had caused some firms to prefer to list in the United States. Sunak also said he was seeking to make it simpler for companies to produce prospectuses for initial public offerings.

“Next year when we legislate we are going to look at things around prospectuses … how we simplify the process of companies issuing IPO prospectuses and what they can put in there without specific legal liabilities,” he said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.