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     aeresearch.net

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

Russia denies plans of blocking YouTube & cutting off from the internet

Russia denies plans of blocking YouTube & cutting off from the internet

By Nikita Chaurasia

The Digital Development Minister of Russia has reportedly stated that the country is not planning to block Google’s video streaming platform YouTube as such a move would affect its users and will therefore be avoided.  It is worth notin...

Indian food delivery giant Swiggy to buy Dineout from Times Internet

Indian food delivery giant Swiggy to buy Dineout from Times Internet

By Nikita Chaurasia

Swiggy, an Indian food delivery giant, has recently announced an agreement with Times Internet to buy Dineout, a dining and restaurant technology platform. Swiggy will use the acquisition to enter the dining out (non-delivery) market, where it will c...

Grocery delivery platform Instacart files for U.S. stock market debut

Grocery delivery platform Instacart files for U.S. stock market debut

By Nikita Chaurasia

Instacart, a grocery delivery service, has announced that it has submitted a provisional registration statement with the Securities and Exchange Commission (SEC), clearing the way for the company to list its shares on the U.S. stock exchange. The ...

Tyson Foods improves annual sales outlook as meat prices surge in U.S.

Tyson Foods improves annual sales outlook as meat prices surge in U.S.

By Nikita Chaurasia

American food major Tyson Foods Inc. has reportedly improved its full-year sales outlook after witnessing better-than-expected earnings and revenue in the last quarter. The company raised its full-year sales to around USD 54 billion, above the averag...

EU likely to enforce new rules to regulate tech giants in spring 2023

EU likely to enforce new rules to regulate tech giants in spring 2023

By Nikita Chaurasia

The Executive Vice President of the European Commission Margrethe Vestager reportedly claimed that the union is likely to start enforcing the Digital Markets Act (DMA) in the spring of 2023. The antitrust legislation, which aims to limit the power of...