The British government has cited national security concerns over the US private equity’s firm to takeover British defence and aerospace company Cobham.
The government are to intervene over the sale and said they want to “support private sector innovation whilst safeguarding public interest.”
Business Secretary Andrea Leadsom said, “Following careful consideration of the proposed takeover of Cobham, I have issued an intervention notice on the grounds of national security.”
Lady Nadine Cobham who built the company over 25-years raised concerns over the US takeover of a British defence firm. Lady Cobham told the Mail on Sunday that the defence and aerospace firm “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.”
The Competition and Markets Authority (CMA) are to investigate and will conduct a review over any national security implications.
Advent International who made the £4bn offer said, “Advent is committed to being a responsible steward of Cobham, encouraging its future growth and success.
“We will continue to engage constructively and cooperatively with the UK government in this part of their review.”
Should the CMA find there are sufficient concerns over national security fears then the British government can veto the deal.
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