Cobham the British engineering firm has been snapped by a US private equity group, Advent International Corporation for £4bn.
Cobham shareholders will have to now vote, they will receive 165p per share and a 34.4% premium on the share’s closing price later today.
Artemis Investment Management has voted in favour of the deal, they have a 5.1% stake in Cobham.
However, politicians could scrutinise the deal as many are fearful that the British defence business is being bought by a foreign entity.
Last year politicians scrutinised the £8bn hostile takeover of the British manufacturer GKN.
Analysts have warned that whilst the pound is trading at a two-year low more private equity takeovers are very likely.
Neil Wilson, chief investment analyst at Markets.com said, “It’s the latest sign that more firms are happy to go private and take them out of the glare of public markets – Cobham’s had its troubles after a hot streak of profit warnings.
“It’s also a sign that weakness in sterling continues to make UK companies attractive to foreign buyers.
“The pound is at its weakest in two years and could bounce on a deal with the EU – carpe diem for foreign buyout specialists.”