Cobham pounces on Ultra Electronics

 

US owned Cobham is near to clinching  £2.6bn to acquire Ultra Electronics as take over of one of the Britain’s defence firms. The UK government is closely monitoring the proposed £2.6bn takeover of Ultra Electronics by a private equity-owned defence industry rival.

Ultra said that its board was mined to recommend a £35-a-share offer from Cobham, which is owned by Advent International, the American private equity firm.

Ultra Electronics provide sonar equipment to the Royal Navy with submarine-hunting sonobuoys capable of detecting torpedos for military patrol aircraft and warships – programmes that have been underwritten by the UK taxpayer.

An acquisition by Cobham,  a UK-based defence and aerospace group itself bought for £4bn by Boston private equity giant Advent International last year.

Critics of the deal warned that Britain risks losing many of its most promising firms to foreign buyers amid fears over national security and loss of technology and expertise overseas.

Both Ultra which employs 4, 500 people, and Cobham are suppliers of components for the F35 and Eurofighter Typhoon fighter jets which will be used on board of Royal Navy’s two new aircraft carriers