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The below Parliamentary question was asked by Lord Myners on 2016-07-20.

To ask Her Majesty’s Government whether they consulted experts in the field before publicly welcoming the acquisition of ARM Holdings by SoftBank, and whether they would similarly welcome a rival bid from an international private equity investor.

Baroness Neville-Rolfe

SoftBank has made it clear that it intends to invest in ARM, keep its HQ in the UK, and at least double the employee headcount in the UK. The Government welcomes this. No rival bids for ARM have so far been made.

The below Parliamentary question was asked by Lord Myners on 2016-07-20.

To ask Her Majesty’s Government how they propose to enforce the commitments they have obtained from SoftBank in connection with employment and the location of the headquarters of ARM Holdings.

Baroness Neville-Rolfe

The Takeover Panel is responsible for enforcing the post offer undertakings given by SoftBank under the terms of the Takeover Code. Grant Thornton LLP has been appointed as an independent supervisor under the Code to monitor compliance with the undertakings. The Takeover Panel can require SoftBank to submit written progress reports in such form and as frequently as it requires and can take disciplinary action if the undertakings are not fulfilled. The Department for Business, Energy and Industrial Strategy will continue to monitor developments.

The below Parliamentary question was asked by Lord Myners on 2016-07-20.

To ask Her Majesty’s Government whether they plan to introduce legislation restricting the acquisition of key UK companies by foreign investors while they consider their industrial strategy.

Baroness Neville-Rolfe

As we build an economy that works for all, the Government will keep the law on takeovers under constant review.

The below Parliamentary question was asked by Lord Myners on 2016-07-20.

To ask Her Majesty’s Government what powers they have to review the financial capacity of SoftBank to support ARM Holdings, and in particular whether they can require a further injection of capital into ARM Holdings before any takeover occurs.

Baroness Neville-Rolfe

It is for the parties to the proposed transaction to consider their relative positions in compliance with the Takeover Code. The board of the target company must take independent advice on the offer, and evaluate its effects on the company’s interests, before giving the board’s opinion to shareholders.

The below Parliamentary question was asked by Lord Myners on 2016-07-20.

To ask Her Majesty’s Government what assessment they have made of the proposed EU-wide recovery and resolution frameworks for failed central counterparties, and whether in their assessment there are any outstanding issues.

Lord O’Neill of Gatley

The government welcomes the European Commission’s commitment to publish a legislative proposal on a recovery and resolution framework for central counterparties (CCPs) and will assess the proposals once published. Given the global nature of CCPs, the recovery and resolution framework will need to take into account ongoing work by the Financial Stability Board, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).

The below Parliamentary question was asked by Lord Myners on 2016-07-20.

To ask Her Majesty’s Government what assessment they have made of the consequences for financial stability of combining four large central counterparties (CCPs), LCH.Clearnet Ltd, LCH.Clearnet SA, Eurex and CC&G, when the London Stock Exchange and Deutsche Borse merge; whether adequate recovery and resolution frameworks will be in place for each of these CCPs; and whether those frameworks will be ring-fenced from each other.

Lord O’Neill of Gatley

LCH.Clearnet Ltd, LCH.Clearnet SA, Eurex Clearing and CC&G are separate CCPs regulated under European Regulation No 648/2012 (EMIR) by their respective regulators. The London Stock Exchange Group and Deutsche Borse have publicly stated their intention that “[t]he existing regulatory framework of all regulated entities within the Combined Group would remain unchanged” following the merger. Once notified by the companies of their proposal to merge, the Bank of England will assess the proposal for a change in control of LCH.Clearnet Ltd in line with the criteria set out in EMIR.