Advent’s takeover move served “intervention notice” for any potential national security risks

 

Business Secretary Andrea Leadsom has intervened in the £4bn takeover by US private equity firm Advent International in a rare move to assess any potential national security risks.

Andrea Leadsom after advice from the defence secretary and others had decided to issue an “intervention notice on the grounds of national security”. The competition and Markets Authority the UK regulator will review the transaction and report back to her by October 29.

Cobham’s air-to-air refuelling technology is used on all western fast jets and it is key component supplier for the F-35 fighter and to the US military’s electronic warfare and radar capability.

The move came just days after shareholders in the FTSE 250, backed  the all cash offer from Advent International with more than 93  per cent voting in favour on a turnout of 78.5 per cent. The British move follows a campaign by the founding family of Cobham, which owns 1.5 per cent of the company claiming the takeover was against the “national interest” Nadine Cobham, whose husband Michael Cobham ran the group and who was the son of its founder Alan Cobham, wrote to the government asking ministers to intercede. Lady Cobham said she was “delighted” that the government had “listened to the widespread concerns about this takeover offer and the risk it poses to high-tech jobs and our national security”.

However, David Lockwood, CEO has rejected any threat to Britain’s interests from the deal. Cobham employs around 10, 000 people around the world of which 1, 700 are in the UK, but generates 50 per cent of its revenues in the US.

The company’s shares were trading down 1 per cent at 159p after the news compared with Advent’s offer of 165p.

Advent said It waws “ committed to being responsible steward of Cobham, encouraging its future growth and success”.