Britain launches security probe into Cobham takeover
The UK launched a national security probe into a £4 billion ($5 billion) takeover bid for British defence group Cobham by a US private equity firm on 18 September.
Advent International in July offered the bid for Cobham, aided by the beneficial impact of the Brexit-hit weak pound.
Shareholders at the British company approved the deal on Monday despite vocal opposition from the founding Cobham family.
Dorset-based Cobham is known for its stake in technology enabling the mid-air refuelling of planes. The firm also makes electronic warfare systems and communications for military vehicles.
‘Following careful consideration of the proposed takeover of Cobham, I have issued an intervention notice on the grounds of national security,’ Business Secretary Andrea Leadsom said in a statement on the day.
She added that the Competition and Markets Authority watchdog would investigate the ‘national security implications of the transaction’ and provide its findings next month.
‘The government's goals are to support private sector innovation whilst safeguarding the public interest,’ Leadsom said.
In late morning deals, Cobham shares slid 0.5 percent to 159.65 pence on London's second-tier FTSE 250 index, which was up 0.2 percent at 20,081.95 points.
‘A muted share price reaction... suggests, rightly or wrongly, that the market expects the deal to go through,’ said Russ Mould, investment director at broker AJ Bell.
‘While there may have been an element of opportunism to Advent's approach, it is certainly not the first overseas firm to take advantage of sterling weakness to acquire UK assets at a discount,’ he said.
More from Defence Notes
-
![Taiwan approved for $11 billion weapon purchase from US]()
Taiwan approved for $11 billion weapon purchase from US
The US State Department’s approval of a multi-billion-dollar sale of weapons to Taiwan includes tactical mission networks equipment, uncrewed aerial systems, artillery rocket systems and self-propelled howitzers as well as anti-tank guided missiles.
-
![Canada to deepen integration of multi-domain capabilities to strengthen its defences]()
Canada to deepen integration of multi-domain capabilities to strengthen its defences
The Canadian Department of National Defence has created new organisations to manage the procurement and integration of all-domain solutions and allocated US$258.33 million to strengthen production capacities.
-
![US National Security Strategy prioritises advanced military capabilities and national industry]()
US National Security Strategy prioritises advanced military capabilities and national industry
The 2025 NSS has emphasised investment in the US nuclear and air defence inventory and national industry, but it leaves multiple unanswered questions on how the White House will implement this approach.
-
![Canada set to look away from its neighbour and across the Atlantic for partners]()
Canada set to look away from its neighbour and across the Atlantic for partners
While non-EU UK struggles to join the Security Action for Europe initiative, which provides loans for defence programmes, Canada has become the first country outside Europe to get access – and did so for a nominal fee.
-
![NATO experiments with solutions to integrate networks, AI and uncrewed systems]()
NATO experiments with solutions to integrate networks, AI and uncrewed systems
During the latest edition of the NATO DiBaX, the alliance tested multiple capabilities to inform requirements for future efforts.
