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

WELL Health reveals plans to acquire Cycura’s services division
WELL Health reveals plans to acquire Cycura’s services division
By Nikita Chaurasia

  The acquisition would elevate WELL Health's cybersecurity program across the technology and healthcare sectors  WELL Health would build a strong portfolio of companies and products/services as part of its capital allocation initia...

Abry adds HealthEZ to its pool of healthcare service investments
Abry adds HealthEZ to its pool of healthcare service investments
By Nikita Chaurasia

Abry Partners, one of the most successful private equity investment firms in North America, has reportedly made it to the headlines for acquiring majority stake in a Minnesota-based third-party administrator of self-funded medical plans, HealthEZ. T...

Welltel acquires Kildare-based secure IT & cloud service provider Novi
Welltel acquires Kildare-based secure IT & cloud service provider Novi
By Nikita Chaurasia

Ireland-based end-to-end communication services provider, Welltel has recently announced the acquisition of Novi, a Kildare-based IT service firm. With the said acquisition the two companies would now be able to offer an integrated suite of secure co...

Canzon to explore German market by partnering with Lykos Verde
Canzon to explore German market by partnering with Lykos Verde
By Nikita Chaurasia

Canzon, an Israeli enterprise selling CBD-based products in Europe has reportedly entered a partnership worth NIS 6 million yearly with German distribution firm Lykos Verde. Sources close to the matter stated that as per the agreement, Lykos Verde w...

Société Générale purchases Shine to expand retail banking portfolio
Société Générale purchases Shine to expand retail banking portfolio
By Nikita Chaurasia

France-based multinational investment bank Société Générale S.A. has reportedly acquired Shine, a neobank for entrepreneurs, for an undisclosed sum. According to reliable sources, the acquisition will allow the financial s...