UK government intervenes in £4 billion Cobham takeover

victoria@aviationnews-online.com
By victoria@aviationnews-online.com September 18, 2019 11:42

UK government intervenes in £4 billion Cobham takeover

The UK government has intervened in the recent £4 billion intended takeover of aerospace supplier Cobham over security concerns.

US firm Advent International made an offer for approximately £4 billion in July, with shareholder approving the deal.

Cobham, based in Dorset, makes critical components for plane maker’s including Airbus, employing more than 10,000 people.

“Following careful consideration of the proposed takeover of Cobham, I have issued an intervention notice on the grounds of national security,” said Business Secretary Andrea Leadsom.

The Competition and Markets Authority (CMA) will investigate and carry out a review on the national security implications of the transaction. 

The government has the power to veto the deal if the CMA finds there are sufficient concerns. 

It must report the results of its decision by 29 October. 

The concerns regarding the takeover deal follow Lady Nadine Cobham, the widow of Sir Michael Cobham, who built up the firm over 25 years, telling the Mail on Sunday that Cobham, which the family still owns 1.5 per cent of the company, “deserves to be protected” by the government.

“It’s an opportune moment for Advent to pounce and the reality is that Advent will break up Cobham and sell off its parts to the highest bidder. 

“This may well include air-to-air refuelling, which is a real shocker,” she said. She also said she would not accept Advent’s assurances that it would maintain Cobham’s UK and US headquarters, as well as investing further into the firm’s research and development efforts.”

victoria@aviationnews-online.com
By victoria@aviationnews-online.com September 18, 2019 11:42