Britain to investigate $5 billion purchase of Cobham
18.09.2019 - Petr Mazaylo
Britain to investigate $5 billion purchase of Cobham

Britain to investigate $5 billion purchase of Cobham

Britain will investigate national security impacts of the purchase of defense company Cobham by U.S. private equity firm Advent International, which would potentially delay or block the $5 billion deal.

Business minister Andrea Leadsom’s move on Wednesday is not unusual where there are potential security concerns and follows British government intervention in the pending acquisition of satellite group Inmarsat, by an international private equity consortium which includes U.S. firm Warburg Pincus.

Leadsom had issued a European intervention notice, calling for a report from the Competition and Markets Authority (CMA) by the end of October to determine whether Cobham, the maker of air-to-air refueling equipment, should be sold.

The CMA could decide to undertake a lengthy inquiry due to Cobham’s role in supporting aircraft such as the F-35 Joint Strike Fighter and Eurofighter Typhoon as well as advanced naval vessels, satellites and military vehicles.

Other deals investigated on national security grounds have often been cleared after undertakings from the buyer.

“The CMA will now prepare a report on the national security aspects of the proposed transaction,” the business department said. “This is a statutory process to ensure national security implications of a proposed sale are fully assessed.”

 

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue