UK government intervenes in the takeover of defense supplier Cobham
By Nikita Chaurasia  Date: 2019-09-20

UK government intervenes in the takeover of defense supplier Cobham

National security is a broad military and political consensus which directly relates to the peace and development of a nation. It is the duty of the government to take proactive measures against possible concerns to maintain national security.

A similar instance occurred recently when the British government intervened in the takeover of Cobham, a UK defense and aerospace sector supplier, by U.S. private equity firm Advent international on account of its potential impact on national security.

Reportedly, Andrea Leadsom, UK’s Business Secretory, instructed Competition and Markets Authority (CMA) to investigate the £4 billion takeover deal of Cobham by Advent international. The UK government apparently has the power to reject the deal if CMA reports find potential concerns.

Speaking on the move, Leadsom said that by considering national security of the proposed takeover of Cobham, she has granted an intervention notice and has directed CMA to investigate in this matter. She said that the main goal of government is to support private sector innovation along with safeguarding the public interest.

For the record, Cobham delivers electronic products and radar for the aviation and defense industries which includes mid-air refueling technology used by RAF planes to extend their range. It employs around 10,000 people across the globe, out of which 2,000 are from UK, and operators in more than 100 countries.

Cobham has broad contracts with the British armed forces, comprising, electronic warfare systems, air-to-air plane refueling, and training military personnel to use software platforms in fighter jets and missile destroyers.

According to defense experts, Cobham’s technology such as air-to-air refueling could be a matter of national security and it is not possible to fight a modern war without keeping aircraft in the air for long.

In response to the government’s decision, a Advent spokesperson said that their company is committed to become a responsible steward of Cobham and will continue to engage cooperatively and constructively with the UK government in this part of their review.

Source Credit - https://www.bbc.com/news/business-49738885

 

About Author

Nikita Chaurasia    

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Insight unveils new Tech Journal for small & midmarket businesses
Insight unveils new Tech Journal for small & midmarket businesses
By Nikita Chaurasia

Insight Enterprises, a renowned US-based technology company and an integrator of the Insight Intelligent Technology SolutionsTM for companies of all sizes, reportedly unveiled a new magazine titled Tech Journal. This magazine would be published each...

Tesla CEO Elon Musk reveals plans to build ventilators for COVID-19
Tesla CEO Elon Musk reveals plans to build ventilators for COVID-19
By Nikita Chaurasia

U.S. auto giant Tesla, Inc.’s CEO, Elon Musk has recently made headlines when he announced that his company is planning to develop ventilators for COVID-19 patients. The move comes after the United States government’s latest appeal for do...

Google News launches Project Oasis to support local entrepreneurs
Google News launches Project Oasis to support local entrepreneurs
By Nikita Chaurasia

Google News has apparently launched Project Oasis in partnership with the University of North Carolina, Table Stakes co-founder Doug Smith, and LION Publishers. The partnership is aimed at helping the founders and aspiring founders of digital ne...

Pfizer collaborates with BioNTech to develop coronavirus vaccine
Pfizer collaborates with BioNTech to develop coronavirus vaccine
By Nikita Chaurasia

Increasing numbers of coronavirus cases worldwide have prompted researchers to develop a potential vaccine candidate to treat COVID-19 patients. Pfizer Inc., one of the leading American pharmaceutical companies, has reportedly collaborated with BioNT...

Amplitude completes debut acquisition with ClearBrain buyout
Amplitude completes debut acquisition with ClearBrain buyout
By Nikita Chaurasia

Amplitude, a comprehensive product intelligence company, announced that it has acquired the software company ClearBrain to accelerate big product bets. The acquisition will enable customers of the company to estimate about the revenue growth driving ...