19th Jun 2018 10:31
LONDON (Alliance News) - The UK Competition & Markets Authority said late Monday it will investigate the GBP44 million sale of Northern Aerospace Ltd to Gardner Aerospace Holdings Ltd after the UK government raised national security concerns.
Better Capital PCC 2012 Cell Ltd - which owns Northern Aerospace - agreed earlier in June to sell the aerospace firm to Gardner Aerospace, which is a wholly-owned subsidiary of Chinese firm Shaanxi Ligeance Mineral Resources Co Ltd.
The UK Secretary of State for Business, Energy & Industrial Strategy Greg Clark raised a public interest intervention notice on a "public interest ground of national security".
The competition regulator launched a phase one investigation until next Tuesday during which it is open to comments from interested parties. It will deliver a report to Clark by July 13.
In the meantime, the CMA - a monopoly regulator - issued an initial enforcement order, meaning as it is looking to review the acquisition and its effects on competition, it requires the firms to pause further integration of the businesses.
On receiving the report, the secretary of state will decide whether to push the investigation into the second phase.
On Tuesday, Better Capital PCC 2012 Cell - also known as BECAP12 - responded with surprise to the announcement. Better Capital "were only made aware last night in respect of the IEO and are surprised. Work has commenced to ensure that all necessary information is provided to the CMA during the course of their investigation."
Shares in BECAP12 were 2.6% lower at 28.26 pence on Tuesday.
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