UK government delays decision on ?4.0bn Cobham takeover
By Duncan Ferris
Date: Tuesday 05 Nov 2019
(Sharecast News) - The UK government on Tuesday delayed its decision on whether to allow the takeover of defence firm Cobham by US private equity firm Advent International.
The Competition and Markets Authority has investigated the proposed merger and provided business secretary Andrea Leadsom with a report on the transaction after concerns were raised over the deal's implications for UK national security.
However, with defence secretary Ben Wallace having also written to Leadsom about the deal, a statement from the government said it has delayed its decision to allow for "further full and proper consideration" of the issues.
"The business secretary will therefore have further discussions with her ministerial colleagues and the parties to the transaction to inform the decision-making process. An update will be provided in due course on the government's decision. The full legal process will continue to be followed throughout the general election period," said the statement.
The two companies had reached agreement on the terms of the £4bn takeover back in July.
FTSE 250-listed Coham is known for having developed pioneering in-flight refuelling technology but also offers radar, information warfare systems and satellite, radio, and wireless mobile connectivity products.
Cobham shares were down 1.81% at 156.95p at 1540 GMT.
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