5th Nov 2019 12:48
(Alliance News) - The UK government on Tuesday said the takeover of defence firm Cobham PLC requires "further full and proper" consideration.
In a written parliamentary statement on Tuesday, Secretary of State for Business, Energy & Industrial Strategy Andrea Leadsom noted receipt of the UK Competition & Markets Authority's report into the deal and added that she has received communication from the secretary of state for Defence.
Defence Secretary Ben Wallace has written on the national security implications of the merger and the discussions which have taken place to propose undertakings to address these issues, she said.
"The decision on how to proceed in this case requires further full and proper consideration of the issues. Having received these reports, I will therefore have further discussions with my ministerial colleagues and the parties to the transaction to inform the decision-making process," said Leadsom.
She added that the full legal process will continue to be followed throughout the lead-up to the UK general election in December.
In July, defence firm Cobham agreed to be taken over in a GBP4 billion deal by an indirect subsidiary of funds managed by US private equity firm Advent International Corp.
Leadsom in September issued a European intervention notice in relation to the deal, and wrote to the UK competition regulator instructing it to investigate. She said the decision came following "careful consideration".
Cobham shares were down 1.9% midday Tuesday at 156.75 pence.
By Lucy Heming; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Cobham