Overseas investors eat the UK tech sector for Brexit: More cash flung about in 7 months than the whole of last year Foreign investors poured $6.7bn (£5.5bn) into the UK tech sector in the first seven months of the year, more than the whole of 2018. US and Asian firms invested most in the period (55 per cent), according to research compiled for the government's Digital Economy Council by industry body Tech Nation and data company Dealroom. …
In 2016, SoftBank's £24.3bn purchase of UK chip-maker Arm was said to be due to sterling being significantly weaker in the wake of the Brexit vote.
Nicky Morgan, Secretary of State for Digital, Culture, Media and Sport, commented: "These fantastic figures show the confidence overseas investors have in UK tech with investment flows from the US and Asia at an all-time high.
It might be a question of semantics, but I thought there was a difference between "investing in" and "buying up and taking complete control of"
"It might be a question of semantics, but I thought there was a difference between "investing in" and "buying up and taking complete control of""
Not really. They buy a company for example. Here in the UK, the people in the UK, the wages in the UK, the business tax in the UK. It is here even if the owner is not.
@Yet Another Anonymous coward
"The jobs move abroad, the wages move abroad, the profits are all made in their Cayman island subsidiary Eventually only the branding is in the UK"
Do they? I guess it depends on the type of work for if it can be moved like that. Otherwise they are buying equipment, intellectual property and experience which is in the UK unless they can afford to move it (not always possible with experienced people).
@Tom Paine
"They pay peppercorn tax thanks to lots of creative accounting, as you know perfectly well."
They follow the tax rules yes. But that is also something the EU enforces as part of the single market. Yet they pay tax in this country plus job creation plus the tax from hiring workers plus the many tax's of the UK.
The fun with people wanting higher tax on companies is they also want the jobs and dont want to lose the tax money already paid. And they would be upset to get a reduction of service. So where does all this money come from?
A few years ago Kraft bought Cadbury's in the UK, having given assurances to the government that there would be no factory closures and production would continue in the UK as before. Within a month after the acquisition, Kraft announced that the Somerdale factory would be closed and production moved to Poland.
So pardon me if I'm sceptical.
(@Hans - I know you're probably in the UK - just giving the whole Cadbury story for the benefit of those who are not)
Eh? Yes, the company and all their employees, capital, customers, brand reputation etc may well be in the UK, but if the shares are all owned by overseas organisations, that's where the dividends go, and likely that's where the Board-level management is carried out.
@Tom Paine
"but if the shares are all owned by overseas organisations, that's where the dividends go, and likely that's where the Board-level management is carried out."
Does that matter? I am sure we are happy for people here to own overseas organisations, collect dividends and manage.
if people are investing similar amounts, in dollar, terms each year then a good chunk of the rise is just due to the pound falling and the conversion rate.
Then there's the attraction of buying bargains before they're gone. Although you would think they could have done even better by waiting a few months.
How long do you think Boris will stay as PM atfer a no-deal Brexit. How hard or many 'bumps in the road' will it take the Brexit faithful to turn on their 'leaders'?
How long do you think Boris will stay as PM atfer a no-deal Brexit. How hard or many 'bumps in the road' will it take the Brexit faithful to turn on their 'leaders'?
Personally, I wouldn't be surprised if Bojo jumped before anyone had the chance to turn on him. Push a no-deal Brexit through and as soon as it's a done deal, declare "my work here is done" and then f*** off leaving someone else to inherit the mess.
When he goes it will mean he has got the best deal (for him).
Slightly off topic: When my Russian wife saw a pic of Boris she asked 'who is that?'.
I said ' it's our new Prime Minister' .
Having looked at his hair she said ' Does he travel in a car with his head out of the window and his tongue hanging out like our neighbour's dog?
Now every time I see him I can't het that picture out if my head.
"Personally, I wouldn't be surprised if Bojo jumped before anyone had the chance to turn on him. Push a no-deal Brexit through and as soon as it's a done deal, declare "my work here is done" and then f*** off leaving someone else to inherit the mess."
Also kown as 'Doing a Cameron' - second definition, not the porky one...
Cameron acted for the leavers. First that non-deal with "concessions" that were less than those provided by the EU's normal rules - e.g. four years for EU migrants to qualify for UK benefits, when EU standard rules make that five years unless a host country chooses to be more generous. Then the non-campaign with heavily gerrymandered electorate - e.g. dropping the manifesto promise to enfranchise Brits abroad.
Of course Boris wanted and expected Cameron to stay on and take the blame. That was a deft manoeuvre to avoid becoming leader in 2016 without being seen to chicken out!
I'M GLAD YOU ASKED ME THAT, BRIAN!
Everything I (think I) know about social psychology strongly suggests that in the event of a really chaotic no-deal Brexit-- what David Davis called "a Mad Max Brexit" -- will lead a significant fraction, probably a majority of committed Leave supporters to doubling down on their ingroup/outgroup identification. That is,society will become MORE polarised. They will circle the wagons and shake their fists impotently at the EU (for stubbornly continuing to exist and to act in their own best interest), the Enemy Within (Remain supporting MPs, news media that are insuffficiently gung-ho) and -- I'm afraid -- ultimate, for some fraction, "The Other", meaning anyone with a funny accent or wearing funny clothes, skin colour, etc.
I hope I'm wrong.
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"However, although government has hailed the stats as a vote of confidence, the UK's historically weak pound is also thought to be a major factor."
They claimed selling ARM was a good idea of confidence but they only bought it because the pound was weak at the time, well also so they now can control the ARM chip market. The Chinese that is. The government seem to love selling all our stuff off on the chip, granted they couldn't force the price of ARM but they could of sold the Post Office off at a profit instead of fucking selling it for peanuts. And now that is gonna go down the pan, with our large local that is always busy being sold, because they know they can get a packet for selling the old building its in. Moving the Post Office to the local WHSmith that is way too fucking small to cope with the traffic it will get!
This is unadulterated good news, yet people still find something to moan about. What do you think happens to the money that is paid for the shares? It finds its way back in to the economy as a whole, the founders of the businesses become millionaires, buy bigger houses, cars, invest elsewhere and in many cases of people I personally know who have benefited from an acquisition, they start up other companies using the money gained and employ more people. In many cases if you're an early employee you'll have some shares too!
I'm speaking from experience as a shareholder of a tech company that has been acquired in the last few years.
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